What is business general liability ?
Business general liability coverage provides insurance against business liability exposures which may arise out of the commercial operations of the insured and result in the business owner losing substantial assets. It is important for a business to carry adequate business liability insurance since firms are exposed to liability on a daily basis, and the percentage of commercial liability lawsuits is quite high.
What Business General Liability Exposures are Covered
Every business is exposed to different liability risks which Business General Liability (CGL) policies try to cover. The following common risks can be insured against under the commercial general liability coverage:
- Premises and Operations Exposure refers to the liability risk that could arise out of the business operations, or occur at the business location of the insured.
- Product Operations Exposure is the risk pertinent to businesses that are involved in the manufacture, distribution, wholesale or retail of products. If the products are found to be faulty by design or defective, businesses could be made to pay huge settlement amounts.
- Contingent Liability Exposure refers to the risk of a business owner to be held liable for the errors of others such as contractors and employees.
There are, of course, many other liability risks a business is exposed to, such as pollution liability, liability for occupational injuries to employees, contract liability, commercial auto liability, aircraft liability, and watercraft liability. These liability risks are typically specifically excluded from a business general liability policy: there are special types of insurance you can purchase if you wish to be covered against these exposures.
Coverages of a Business General Liability Insurance
A Commercial General Liability policy consists of three basic coverages which may be offered on an occurrence or claims-made basis:
- Coverage A - Bodily Injury and Property Damage Liability pays on behalf of the insured any legal damages the insured might owe a third party for causing them bodily injury or property damage as a result of the business activities of the insured. Under Coverage A, the insurer is also obligated to provide the insured defence in the event of a liability lawsuit.
- Coverage B - Personal and Advertising Injury Liability pays the damages on behalf of the insured for liability that may cause personal or advertising injury to a third-party, such as slander, libel, false imprisonment, etc.
- Coverage C - Medical Payments comes into force when a third party suffers from bodily injury on the commercial premises of the insured. Coverage C pays the medical expenses of the injured party, regardless of whether the insured is guilty or not.
All these coverages of a business general liability policy have a lot of exclusions, and there are a number of supplementary payments that are available under Coverages A and B.
Do I need business auto insurance?
As a businessowner, you need the same kinds of insurance coverages for the car you use in your business as you do for a car used for personal travel. In fact, many business people use the same vehicle for both business and pleasure. If the vehicle is owned by the business, make sure the name of the business appears on the policy as the "principal insured" rather than your name. This will avoid possible confusion in the event that you need to file a claim or a claim is filed against you.
Whether you need to buy a business auto insurance policy will depend on the kind of driving you do. A good insurance agent will ask you many details about how you use vehicles in your business, who will be driving them and whether employees, if you have them, are likely to be driving their own cars for your business.
While the major coverages are the same, a business auto policy differs from a personal auto policy in many technical respects. Ask your insurance agent to explain all the differences and options.
If you have a personal umbrella liability policy, there's generally an exclusion for business-related liability. Make sure you have sufficient auto liability coverage.
What does a business owners insurance cover?
Insurance companies selling business insurance offer policies that combine protection from all major property and liability risks in one package. (They also sell coverages separately.) One package purchased by small and mid-sized businesses is the businessowners policy (BOP). Package policies are created for businesses that generally face the same kind and degree of risk. Larger companies might purchase a commercial package policy or customize their policies to meet the special risks they face.
BOPs include:
- Property insurance for buildings and contents owned by the company -- there are two different forms, standard and special, which provides more comprehensive coverage.
- Business interruption insurance, which covers the loss of income resulting from a fire or other catastrophe that disrupts the operation of the business. It can also include the extra expense of operating out of a temporary location.
- Liability protection, which covers your company's legal responsibility for the harm it may cause to others. This harm is a result of things that you and your employees do or fail to do in your business operations that may cause bodily injury or property damage due to defective products, faulty installations and errors in services provided.
BOPs do NOT cover professional liability, auto insurance, worker’s compensation or health and disability insurance. You'll need separate insurance policies to cover professional services, vehicles and your employees.
How can I save money on my California business owners insurance?
Here are five ways to save money on California Business Insurance:
- Shop around.
Prices vary from company to company, so it pays to shop around. Get the names of companies or brokers who specialize in your type of business. Call several so that you can compare prices and get a feel for the types of services they would provide.
It's also important to pick a company that is financially stable. Check the financial health of insurers and consult consumer magazines.
- Choose a higher deductible.
Deductibles represent the amount of money you pay before your insurance policy kicks in. The higher the deductible, the less you will pay for the policy.
- Buy a package policy.
It can sometimes be cheaper to purchase a package policy, such as a Businessowners Policy (BOP), rather than individual coverages. A package policy provides standard coverages and limits of liability that are appropriate for typical small-to-medium-sized businesses.
- Work closely with your agent or broker.
Your insurance professional can provide invaluable advice to help protect your business from unexpected disasters. But you need to keep him or her informed about any major changes in your business. This includes major purchases, expansions or changes in hiring or the nature of your operation. Also, get your agent's advice in terms of disaster planning. Ask what you can do to both reduce risks like fire or work-related accidents, as well as the procedures that should be in place in case your business does suffer a major catastrophe.
Having the right coverage and a well thought out disaster plan can save you money in the long run. It may even save your business from going under.
- Ask about ways to prevent losses.
You may be able to reduce your premium for certain coverages by following your insurer's recommendations. These can include workplace safety, disaster preparation, and human resource intervention.
Is insurance coverage different for different businesses?
It can be. Many small businesses are now insured under package policies that cover the major property and liability exposures as well as loss of income. A common package policy used by many small businesses is called the Businessowners Policy (BOP).
Generally, these package policies provide the small business owner more complete coverage at a lower price than separate policies for each type of insurance needed. Metropol Insurance can help you decide which policy or policies are right for your business. Additional coverage for property, liability or perils or conditions otherwise excluded (e.g., flood protection) can be purchased as endorsements to a standard policy or as a separate, second policy called a difference-in-conditions (DIC) policy.
Because businesses vary, it is impossible to have a standard policy to cover all contingencies. Also, some businesses, regardless of their size, do not fit the profile of a standard business owners policy. For example, restaurants, wholesalers and garages have special liability needs that are not met in the standard businessowners policy. Your agent can provide you with information so you can choose the right policy (or policies) to protect you and your business.
What type of business insurance I need for my properties?
Your business may not possess all the following types of property, but you can use this list to make sure that you have considered all the property categories and any insurance coverage that may be warranted:
- Buildings and other structures (owned or leased)
- Furniture, equipment and supplies
- Inventory Money and securities
- Records of accounts receivable
- Improvements and betterments you made to the premises
- Machinery Boilers Data processing equipment and media (including computers)
- Valuable papers, books and documents
- Mobile property such as automobiles, trucks and construction equipment
- Satellite dishes Signs, fences, and other outdoor property not attached to a building
- Intangible property (good will, trademarks, etc.)
- Leased equipment
To establish the amount of insurance you need on each, your agent can help you review the types of property you own and their uses. Some of these items are covered in the basic policies. For others, coverage can be added by an endorsement, or rider. And some, like money and securities, may not be covered by a standard Business insurance policy and may require a second, separate policy.
Why do I need business insurance?
Every business has some property. And, when you think about it, your business is your property. Just like your home and your car, your business needs to be protected from loss, damage and liability. In addition, your business is your source of income, so you need protection from the potential loss of that income.
Generally, there are two types of insurance, property and liability. Property insurance covers damage to or loss of the policyholder's property. And if somebody sued for damages caused by you or your possessions (other than a vehicle covered by your insurance policy), the cost of the suit -- both defending it and settling it, if necessary would be covered by your liability insurance.
Business umbrella insurance?
It is a well-known fact that the most catastrophic lawsuits are the ones related to the liability of business owners. Another fact is that general liability policies usually fall short of providing adequate protection in the event of a catastrophic business liability suit. Business owners can prevent the latter by purchasing a business umbrella insurance policy.
Characteristics of Business Umbrella Insurance
Business umbrella insurance is a necessary protection against catastrophic loss a business might suffer as a result of a liability lawsuit. Therefore, business owners who find themselves particularly exposed to the risk of being sued for large amounts should consider topping up their existing general liability policies with a business umbrella. Here are some of its most important characteristics:
- Business umbrella insurance provides liability coverage for bodily, personal or advertising injury, and property damage, over and above any existing general liability policies. The provider of business umbrella insurance agrees to pay the share of the compensation, which is in excess of the policy limits of existing liability coverage, or in excess of the retained limit.
- The so-called retained limit of business umbrella insurance refers to either the underlying insurance policy limits, or the self-insurance retention (or SIR) - a deductible that the insured needs to pay before the policy can come into effect.
- In order to purchase a business umbrella, the business owner is required to have an underlying coverage such as Business General Liability insurance, Employers Liability insurance or Business Auto Liability insurance.
- A business umbrella will kick in once the limits on the underlying policy have been exhausted or if a loss is not covered by the underlying policy.
- If the insured does not have an underlying insurance coverage, they need to provide self-insurance retention (SIR) which can range from $500 to a million dollars, depending on the size of the business insured.
Why do I need business income insurance?
If you are a California business owner, you must rely on your business personal property to gain profit.
But what if your commercial property suffers physical damage? You will - in all probability - have to spend a few months or more having your property restored or repaired to its original condition, and lose considerable profit that you would otherwise have gained.
The remedy - or better - the prevention comes in the form of business income insurance - a special type of coverage specifically designed to provide financial protection for lost profits and any additional expenses related to the damaged property in the restoration period.
Characteristics of Business Income Insurance
- The Insurance Services Office (ISO) uses two major forms for business income insurance - business income and extra expense coverage form, and extra expense coverage form.
- The business income (and extra expense) form covers loss of income coming from retail or services provided by the named insured, and any additional expenses that the named insured may have, pertinent to the functioning of the covered premises.
- In addition to providing coverage of business income and other extra expenses, business income insurance provides certain other coverages, some of which are listed as follows:
- If a civil authority is at fault for the direct physical damage to a business property, the business income and extra expenses insurance coverage will pay for the business income lost and any extra expenses.
- Any necessary additions and alterations to the covered property are also covered by business income insurance.
- Business income coverage for an extended period is sometimes needed for a business to go back to its normal operations after a restoration period. Business income insurance provides such coverage which lasts for 30 days, or when the business recovers.
- The extra expense coverage form is for businesses which cannot afford to stop their operations, such as newspapers, banks, etc. The extra expense coverage pays the additional expenses the business owner has incurred while operating after a loss, without the payment of which the business cannot return to normal.
What are the business owner policy exclusions?
A business owner policy is characterized by a considerably comprehensive coverage: it is commonly written on an all-risk basis, unless the insured specifically requests the named-peril version of the policy by adding a special endorsement.
The all-risk coverage that is typical of a business owner policy means that any physical damage or loss is insured against, except for the causes-of-loss specifically excluded from the policy. Therefore, being aware of the business owner policy exclusions is just as important as knowing what its coverages are.
Business Owner Policy Exclusions
A list of the perils which are usually excluded from business owner policies:
- Weather conditions or smog;
- Pollution;
- Military actions;
- Water: flood, seepage of water, sewer backup, etc.
- Earthquakes;
- Operations executed by the government;
- Ordinance or law;
- Nuclear hazard;
- Explosion of machinery, such as engines or boilers;
- Collapse different than the instances that are covered by the business owner policy;
- Smoke or gas caused by different industrial activities;
- Power failure;
- Intentional illegal actions performed by the named insured;
- Criminal acts or fraud performed by the employees of the insured;
- Loss of market;
- Interruption or failure of artificially generated electric power supply, which occurs more than 100 miles out-with the insured property;
- Loss resulting from the failure of the business policy owner to take the necessary steps for preserving the insured property;
- Errors in the computer system of the insured business owner;
- Damage or loss caused by wear and tear;
- Loss caused by animals, insects, birds, etc.;
- Decay, rust or corrosion;
- Shrinking or expansion;
- Property loss resulting from faulty design, planning and development;
- Errors and omissions in computer operations
How does small business liability insurance work?
Owners of small businesses can purchase business liability insurance in the form of a Businessowners policy, also commonly referred to as BOP. This is an ISO package policy specifically designed for small and medium-sized businesses, containing a personal property coverage and a third-party liability coverage, and resembling business general liability insurance.
Characteristics of Small Business Liability Insurance
- The small business liability insurance part of a BOP provides protection to the business owner if the latter is found liable for causing damage or loss to a third-party arising from the business owner's commercial activities. The business liability insurance provider promises to pay any damages to indemnify the injured party on behalf of the insured, which they are legally obligated to pay, up to the business policy limits.
- The business liability coverage of a Businessowners policy insures the business owner for third-party liability in the following events:
- Bodily injury arising from the business operations of the insured business owner;
- Property damage directly caused by the business owner's commercial activities;
- Personal and advertising injury caused by the insured business owner, including defamation of character, false arrest, etc.
- In addition to the business liability coverage, a BOP contains a coverage for the medical expenses of others. It is important to note that this coverage is applied regardless of legal liability. This means that the liability of a small business owner need not be established in court, for the medical expense coverage of a businessowners policy to be applied. The injured party simply needs to report the incident within a year of its occurrence, providing documents of all the medical bills incurred.
- The provider of liability insurance for the small business agrees to defend the insured in court in the event of a liability case against them, and to pay all the legal defense fees involved in such a case.
What is P&I insurance?
In the insurance world, the abbreviation P&I stands for "property and indemnity" insurance - the type of liability coverage which has been specifically designed for the owners of sea-going vessels, such as ships - which are used to transport cargoes for commercial purposes.
P&I insurance provides comprehensive liability protection against the liability risks ship owners are exposed to.
Who Needs P&I Insurance
Owners of ships or other type of water craft utilized for purposes of the business need P&I insurance because of the great number of liability risk exposures involved in their commercial operations. Since third-party liability may arise in a considerable number of incidents and situations, a commercial ship owner should have adequate liability protection.
The P&I insurance coverage is part of ocean marine insurance, together with other coverages such as cargo insurance, freight insurance and hull insurance.
Liability Risks Covered by P&I Insurance
P&I insurance provides comprehensive protection to ship owners against a number of liability risks arising out of negligence. Intentional wrongdoings are specifically excluded from P&I insurance policies.
P&I insurance covers liability risks of accidental nature, ranging from property damage caused by the ship to the bodily injury of members of the crew.
P&I insurance provides liability coverage in the following hypothetical situations:
- If the ship collides with another ship, resulting in property damage to the other vessel;
- If the ship causes damage to piers, docks, harbor equipment or installations;
- If the ship causes damage or loss to the transported cargoes;
- If passengers of the water craft or the crew suffer from bodily injury while on the ship.
- If people outside the water craft, such as long shore or harbor workers are injured by the ship operations.
Is business personal property covered under a businessowners policy?
Personal business property coverage is one of the major characteristics of a Businessowners policy (BOP) which is specifically designed for small and medium-sized businesses such as retailers, office buildings, etc.
What Business Personal Property is Covered by BOP
All personal property of the named insured, which is utilized for commercial purposes, is covered by a Businessowners policy. In addition, a BOP covers any betterments made by the tenants to the building of the insured, any property which the insured leases and which they have agreed to cover, and other people's property that happens to be in the custody of the insured.
A Businessowners policy has many assets. It provides an additional coverage for exterior building glass which is part of business personal property, provided that the named insured owns the glass or is in its care or custody, and that the insured is a tenant of the building in question.
Another characteristic of the business personal property portion of BOP, which cannot be found in other commercial property policies, is the so-called "peak season" provision. When the value of the insured business personal property soars, the peak season provision comes into effect, providing a temporary 25-percent rise in the insurance coverage amount.
Yet another favorable aspect of the BOP business personal property coverage is the automatic protection for business personal property at newly acquired premises, which it provides. This automatic coverage is valid for 30 days from the date when the change happens. The business personal property in a newly acquired location is insured for up to $100,000 until the named insured endorses the policy to cover the new premises. The same coverage limits apply to business personal property that is temporarily away from the premises specified in the policy declarations, or is in transit.
What is ocean marine insurance?
Ocean marine insurance is a type of transportation insurance intended to protect goods that are transported over water. Ocean marine insurance can take the form of a number of different contracts, depending on the personal insurance needs of the prospective insured.
Ocean Marine Insurance Coverages
An ocean marine insurance policy provides protection against a wide range of causes-of-loss on a named-peril basis, including perils of the sea, such as collision, high waves, stranding; and other perils, such as damage or loss caused by pirates, jettison, fire, barratry, etc. However, at the request of the named insured, ocean marine insurance can provide protection against all risks, except the ones that are specifically excluded in the policy.
Here are the common coverages provided by ocean marine insurance:
- Hull insurance resembles the collision coverage of auto insurance policies in that it provides protection against any potential damage to the vessel or ship. If you opt for this type of ocean marine insurance contract, you will have to pay a certain deductible in the event of a covered loss. Hull insurance has an extra provision called collision liability coverage under which ship owners whose vessels cause physical damage to another vessel and/or its cargo, are protected. However, this clause does not pertain to liability for bodily injury.
- Freight insurance provides financial protection to the owner of the vessel in the event that the cargo is damaged or lost.
- Cargo insurance indemnifies the shipper of the goods if the latter have suffered any damage or loss. Depending on the personal insurance needs of shippers, cargo insurance can cover a single shipment or it can be written on an open-policy basis whereupon the policy provides automatic coverage for every shipment.
- Protection and indemnity insurance protects the owner of the vessel against legal liability that may arise out of the bodily injury or property damage to others.
How do I insure my home business?
InCalifornia If you're running a business from your home, you may not have enough insurance to protect your business equipment. A typical homeowners policy provides only $2,500 coverage for business equipment, which is usually not enough to cover all of your business property. You may also need coverage for liability and lost income. Insurance companies differ considerably in the types of business operations they will cover under the various options they offer. So it's wise to shop around for coverage options as well as price.
Regardless of the type of policy you choose, if you're a professional working out of your home, you probably need professional liability insurance. Some types of in-home businesses, such as those that make or sell food products or sell home-made personal care products, may have to buy special policies.
To insure your California business, you have three basic choices, depending on the nature of your business and the insurance company you buy it from. They are:
- Homeowners Policy Endorsement.
You may be able to add a simple endorsement to your existing homeowners policy to double your standard coverage for business equipment such as computers. For as little as $25 you can raise the policy limits from $2,500 to $5,000. Some insurance companies will allow you to increase your coverage up to $10,000 in increments of $2,500.
You can also buy a homeowners liability endorsement. You need liability coverage in case clients or delivery people get hurt on your premises. They may trip and fall down your front steps, for example, and sue you for failure to keep the steps in a safe condition.
The homeowners liability endorsement is typically available only to businesses that have few business-related visitors, such as writers. But some insurers will provide this kind of endorsement to piano teachers, for example, depending on the number of students. These endorsements are available in most states.
- In-Home Business Policy/Program.
An in-home business policy provides more comprehensive coverage for business equipment and liability than a homeowners policy endorsement. These policies, which may also be called in-home business endorsements, vary significantly depending on the insurer.
In addition to protection for your business property, most policies reimburse you for the loss of important papers and records, accounts receivable and off-site business property. Some will pay for the income you lose (business interruption) in the event your home is so badly damaged by a fire or other disaster that it can't be used for a while. They'll also pay for the extra expense of operating out of a temporary location.
Some in-home business policies allow a certain number of full-time employees, generally up to three.
In-home business policies generally include broader liability insurance for higher amounts of coverage. They may offer protection against lawsuits for injuries caused by the products or services you offer, for example.
In-home business policies are available from homeowners insurance companies and specialty insurers that sell stand-alone in-home business policies. This means that you don't have to purchase your homeowners insurance from them.
- Businessowners Policy (BOP).
Created specifically for small-to-mid-size businesses, this policy is an excellent solution if your home-based business operates in more than one location. A BOP, like the in-home business policy, covers business property and equipment, loss of income, extra expense and liability. However, these coverages are on a much broader scale than the in-home business policy.
A BOP doesn't include workers compensation, health or disability insurance. If you have employees, you'll need separate policies for these coverages.
- Automobile Coverage.
If you are using your car for business activities -- transporting supplies or products or visiting customers -- you need to make certain that your automobile insurance will protect you from accidents that may occur while you're on business. Contact your home or auto insurer.
Do I need workers comp insurance?
Employers have a legal responsibility to their employees to make the workplace safe. However, accidents happen even when every reasonable safety measure has been taken.
To protect employers from lawsuits resulting from workplace accidents and to provide medical care and compensation for lost income to employees hurt in workplace accidents, in almost every state, businesses are required to buy workers compensation insurance. California Workers compensation insurance covers workers injured on the job, whether they're hurt on the workplace premises or elsewhere, or in auto accidents while on business. It also covers work-related illnesses.
Workers compensation provides payments to injured workers, without regard to who was at fault in the accident, for time lost from work and for medical and rehabilitation services. It also provides death benefits to surviving spouses and dependents.
Each state has different laws governing the amount and duration of lost income benefits, the provision of medical and rehabilitation services and how the system is administered. For example, in most states there are regulations that cover whether the worker or employer can choose the doctor who treats the injuries and how disputes about benefits are resolved.
Workers compensation insurance must be bought as a separate policy. Although in-home business and businessowners policies (BOPs) are sold as package policies, they don't include coverage for workers' injuries.
While your business may not need all commercial coverage lines, it is a good idea to have a basic knowledge of the types of business insurance coverages available. As your business changes and expands you will have the necessary knowledge to purchase insurance coverage as new exposures arise. The following commercial lines of insurance cover broad areas of exposure common to most business operations:
Property Insurance
* Commercial Property
* Inland Marine
* Boiler and Machinery
* Crime
Casualty Insurance
* Business Auto
* Business General Liability
* Business Umbrella
* Workers Compensation
Property Insurance
Business insurance is divided into two main categories: property insurance and casualty insurance. Property insurance provides coverage for property that is stolen, damaged, or destroyed by a covered peril. The term property insurance includes many lines of available insurance. Business Property, Inland Marine, Boiler and Machinery, and Crime are the most common commercial property coverage lines.
Business Property
Buildings you own or lease as a part of your business, your business personal property, and the personal property of others make up the basic coverage sections of business property insurance. Business property insurance can be sold separately as
an individual line policy (referred to as a monoline policy), or it can be sold as part of a Business Package Policy (CPP), which combines two or more commercial coverage parts such as business property, general liability, and business auto.
Building coverage includes buildings or structures and any completed additions, which are listed on the declarations page of a commercial policy. Permanently installed fixtures, machinery, and equipment are also insured as a part of building coverage. The limit of insurance is the estimated amount needed to rebuild your building and to replace permanently installed fixtures, machinery, and equipment in the event of a total loss.
Business Personal Property consists of furniture; fixtures, machinery, and equipment not permanently installed; inventory; or any other personal property owned by and used in your business. Personal Property of Others refers to property that is in your business's care, custody and control. The type of business you operate will determine if you need to protect the personal property of others.
Inland Marine
Without prior knowledge of inland marine insurance, it is easy to assume that this insurance line has something to do with boating transportation. In fact, inland marine insurance can cover a variety of transportation exposures; however, it does not cover boating transportation, which is covered under ocean marine insurance. Inland marine is a specialized type of property insurance that primarily covers damage to or destruction of your business property while in transport. Inland marine also covers the liability exposure for the damage or destruction that may occur to property in your care, custody, or control during transport.
Boiler and Machinery
Boiler and machinery insurance can add an important layer to potential insurance coverage. Boiler and machinery insurance is currently marketed under such names as systems protector, systems breakdown, and machinery breakdown insurance. Boiler and machinery insurance covers business property, other property losses, and legal fees (if any) that may result from the malfunction of boilers and machinery. Boiler coverage includes covering the costs of inspection and often maintenance of boilers. Machinery coverage can include many different types of machines used in retail, office and manufacturing settings. Machinery coverage also includes major machinery systems common to most commercial buildings, such as heating, ventilating and air conditioning systems. Since most business property policies exclude losses from boilers and machinery, it is important to be aware of any exposure your business may have.
Crime Insurance
Crime insurance provides protection for the assets of your business including merchandise for sale, real property, money and securities. It is considered a property insurance line. Based on the crime coverage that you purchase, it is possible to be covered for the following causes of loss: robbery, burglary, larceny, forgery, and embezzlement.
Casualty Insurance
Casualty insurance provides coverage primarily for the liability exposure of an individual, business or organization. Liability from the negligent acts and omissions of an individual, business or organization that causes bodily injury and/or property damage to a third party is the subject of casualty insurance coverage.
Commercial Automobile, Commercial General Liability, Commercial Umbrella, and Workers Compensation are the most common business casualty insurance lines.
Business Auto Insurance
Commercial auto coverage is similar to the coverage you may carry on your personal auto; however, business auto exposures can be more complex requiring specialty coverages to be considered based on the individual needs of your business. Basically, business auto coverage can protect your company from any liability stemming from autos used in your business or any damage to the covered automobile. A Business Auto Policy (BAP) has the flexibility to provide coverage for business, personal, non-owned, or hired autos based on the coverage purchased and applied to each scheduled auto.
Business General Liability
One of the key concepts of liability coverage is that it is comprehensive in nature. What this means is that the policy (insuring agreement) covers all hazards within the scope of the insuring agreement that are not otherwise excluded. It is likewise comprehensive in that it provides automatic coverage for new locations and activities of your business, which come about after policy inception and throughout the policy term. Commercial General Liability (CGL) is the standard commercial liability policy used to insure businesses.
Business Umbrella
When a liability claim goes above the aggregate limit of liability, the policy limits are exhausted. By purchasing a commercial umbrella, you can protect your business from being liable for this excess liability judgment. A business umbrella covers the amount of loss above the limits of a basic liability policy. Business auto, Business general Liability, workers compensation, or any liability policy can be covered by a Business umbrella.
Workers Compensation Insurance
As a California employer you are required under California Labor Code Section 3700 to provide workers compensation benefits for your employees. When an employee suffers a work related injury or illness, workers compensation insurance steps in to provide benefits based on the type of illness or injury sustained. Workers compensation is based on a no-fault system, which means that an injured employee does not need to prove that the injury or illness was someone else's fault in order to receive workers compensation benefits for an on-the-job injury or illness.
Bonds
Most commonly known as Surety bonds, these are agreements that the surety agrees to uphold - for the benefit of the obligee-the contractual promises (obligations) made by the principal if the principal fails to uphold its promises to the obligee. The contract is formed so as to induce the obligee to contract with the principal, i.e., to demonstrate the credibility of the principal. There are two main categories of bond types: contract bonds and commercial bonds. Contract bonds guarantee a specific contract. Examples include performance, bid, supply, maintenance and subdivision bonds. Commercial bonds guarantee per the terms of the bond form. Examples include license & permit, union bonds, etc. |
