COMMERCIAL FAQs

Commercial insurance is insurance for businesses. This can include business auto, workers compensation, building coverage, general liability and professional liability.

Property insurance protects your buildings and equipment, stock, furniture and fixtures. Some policies also include equipment breakdown and business income coverage. Basic property insurance will generally cover your business for losses in the event of a fire or lightening strike and will pay the cost of removing property to protect it from further loss. Additionally, a standard small business insurance policy will usually cover losses from windstorm, hail, explosion, riot and civil commotion and damage caused by aircraft, automobiles or vandalism.

Property insurance can be purchased on the basis of the property's actual value (the replacement cost minus depreciation); it's replacement value (the cost of replacing the item without deducting for depreciation); or an agreed upon amount.

There are many different types of third-party liabilities to be covered for a business. Business liability insurance may protect you from claims arising from someone's bodily or personal injuries. Other items that could be covered are damage to the property of others, products-completed operations, advertising, premises operations, fire legal liability and related legal defense costs. For instance, liability insurance will not only pay the cost of covered damages but also attorney fees and other costs associated with your defense.

This refers to the injury, sickness, disease, or even death, of any person that occurs during the policy period.

Coverage designed to protect against the liability for injury, loss, or damage caused by your products or operation that may incur after you are no longer in control of them.

The Named Insured can be one person, partnership, corporation or any other entity with insurable interest and is shown on the declaration page of the policy. The First Named Insured on the declaration page of the policy usually acts as the legal party that handles any request, such as changes to the policy and cancellations. When an Additional Insured is added to a policy, coverage is being extended to that entity with respect to your activities as the insured. A relationship must be established between the Insured and the Additional Insured and does not eliminate the need for the Additional Insured to carry their own General Liability policy.

Certain policies written give the insurance company the privilege of auditing the policyholder's records to verify the accuracy of the premiums paid at the end of the policy term. If the exposure is based on, for example, sales or payroll, the company will usually perform an audit in person, by mail or telephone. It is important to perform the audit when requested to avoid an additional premium charge.

It is important that anyone doing work for you is properly insured to prevent you from picking up their liability exposure. This is additionally important if you are audited by the insurance carrier; without certificates of insurance showing proof of insurance from your sub contractors, the auditor may add the sub contractor's payroll to yours resulting in additional premium.

Hired car physical damage coverage must be purchased to cover this type of loss.

All drivers should be listed on your policy if they are regular drivers of your business vehicles, however anyone can drive your vehicle with your permission.