Business Insurance

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Commercial Property - A Commercial Property policy provides coverage for Real and Personal Property used in a business. Coverage may be for Buildings and/or for Business Personal Property. There are two cause of loss forms - All Risk (Loss covered unless excluded in the policy) or Specified Perils (To be covered loss must be caused by one of the perils listed in the policy). Property may be valued at Replacement Cost (Cost to replace with materials of like kind and quality), Actual Cash Value (Cost new less depreciation and obsolescence), or Stated Amount (Value agreed to at policy inception).

Commercial Liability - Protection which pays sums that an insured is legally obligated to pay, or that the insurer has agreed to pay, as damages to others as a result of the insured's negligence. Usually provides coverage for bodily injury or damage to property of others.

Commercial Automobile - Insurance pertaining to the ownership, maintenance, or use of automobiles. Automobile coverage is divided into Automobile Liability (Losses incurred through legal liability for bodily injury and damage to property of others caused by accidents) and Physical Damage (Loss or damage to the policyholder's automobile). Physical Damage coverage is further divided into Collision (Coverage for losses resulting from the striking of another object - except animals - by a moving vehicle) and Other than Collision (An All Risk type of physical damage protection for automobiles including theft but excluding loss by collision or upset).

Business Owner's Policy (BOP) - A combination of broad property and liability coverages in a single contract designed for small and medium-sized mercantile, service, office or apartment risks. Typically provides coverages intended to meet the needs of the selected class of business.

Commercial Package Policy (CPP) - A combination of Property and Liability coverages of two or more separate policies in one contract with one premium. The development of package policies is a move toward economy and efficiency in giving the policyholder one document instead of several.

Crime - Insurance protection against losses of money, securities and property by such causes of loss as employee dishonesty, forgery, theft, burglary, robbery, kidnap, extortion and fraud.

Workers' Compensation - An insurance policy which provides benefits to employees for any injury or contracted disease arising out of and in the course of employment. The coverage and benefits are determined according to the individual state statutes. In most states Workers' Compensation and Employers Liability Insurance are combined in a single policy. Employers Liability Insurance provides coverage for the common law liability of an employer for injuries sustained by employees, as distinguished from liability imposed by workers' compensation statutes.

Equipment Breakdown - Formerly known as Boiler and Machinery Insurance or Machinery Breakdown Insurance. Protection against loss from disruption of boilers and machinery by an insured peril: loss to the boiler and machinery itself, damage to other property, business interruption losses, or all three.

Inland Marine - The insurance for property that is in the course of transportation or is of such a nature that it may easily be transported. Also includes some risks at fixed locations considered "instruments of transportation or communication," such as bridges, tunnels, signs and towers which were accepted as inland marine by custom. The term Inland Marine originally meant the insurance of goods in transit "inland," instead of at sea, by underwriters who specialized in Ocean Marine insurance. Includes coverage for Cargo, Mobile Equipment, Electronic Data Processing Equipment, Builders Risk, Installation Floaters and Contractor's Equipment.

Builder's Risk - A form of Inland Marine Insurance that provides unique coverages for property under construction. Coverage typically includes the structure under construction as well as building materials on-site and in transit.

Ocean Marine - The protection of ships, their cargoes, and the freight, including protection and indemnity insurance to cover ship owners' liabilities for loss of life to any person, illness or injury to crew, damage to cargoes carried, and damages to fixed or floating objects.

Business Income - A type of time element coverage which pays for loss of earnings or income when business operations are interrupted curtailed or suspended due to property loss as a result of an insured cause of loss. May also cover loss of rents and rental value. Extra expenses incurred to continue operations may also be covered as long as they reduce the total amount of loss.

Umbrella - A form of liability insurance protecting policyholders for claims in excess of the limits of their primary Automobile Liability, General Liability and Employers Liability policies, and for some losses excluded by their primary policies. A deductible may apply to losses not covered by primary insurance.

Excess Liability - A form of Liability insurance designed to provide an extra layer of coverage above the primary limits of insurance. The excess coverage does not respond until the limits of liability in the primary layer have been exhausted. Excess limits can be obtained for Auto Liability and General Liability or a combination of the two.

Directors and Officers - Protects officers and directors of a corporation against damages from claims resulting from negligent or wrongful acts in the course of their duties. Also covers the corporation for expenses incurred in defending lawsuits arising from alleged wrongful acts of officers or directors.

Employee Benefits Liability - Protects the insured employer against claims made by employees or former employees caused by a negligent act, error or omission in the administration of the insured's employee benefit programs. Exposures such as providing incorrect advice concerning an employee's pension plan or failure to enroll employees under a benefit program are covered under this insurance.

Employment Practices Liability - Provides liability coverage to employers for losses associated with certain employment practices that lead to allegations of unfair treatment, wrongful termination, religious discrimination, gender discrimination or sexual harassment. Also provides coverage for expenses incurred in defending lawsuits arising from these allegations.

Professional Liability - A class of insurance policies that indemnifies the insured for third-party liability claims due to negligence in the performance of professional services. Professionals include doctors, lawyers, engineers, insurance agents and others.

Bonds - A three-party contract in which one party agrees to guarantee the act, performance or behavior of a second party to a third party. Two common types of bonds are fidelity and surety. Fidelity Bonds reimburse an employer for losses resulting from dishonest acts of employees. Surety Bonds are a written agreement wherein one party (the surety) obligates itself to a second party (the obligee or beneficiary) to answer for the default of a third party (the principal) in failing to perform specified acts within a stated time. Common types of bonds are Contract (Bid, Performance and Payment), License and Permit, Court, Fiduciary and Public Official.