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General Liability





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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.

Unfortunately for every business owner, the chances of getting sued have dramatically increased in the last decade. General Liability insurance can prevent a legal suit from turning into a financial disaster by providing financial protection in case your business is ever sued or held legally responsible for some injury or damage.

General Liability pays losses arising from real or alleged bodily injury, property damage, or personal injury on your business premises or arising from your operations.

Broad Range of General Liability Protection

  • Bodily Injury, including the cost of care, the loss of services, and the restitution for any death that results from injury
  • Property Damage coverage for the physical damage to property of others or the loss of use of that property
  • Products-Completed Operations provides liability protection (damages and legal expenses up to your policy's limit) if an injury ever resulted from something your company made or service your company provided
  • Products Liability is a more specialized product liability insurance that protects your company against lawsuits from product-related injury or accidents
  • Contractual Liability extends to any liability you may assume by entering into a variety of contracts
  • Other coverage includes: Reasonable Use of Force; Borrowed Equipment; Liquor Liability; Non-Owned Vehicles (such as aircraft and watercraft); Fire, Lightning or Explosion Damage; Water Damage Liability Protection; Legal Defense Costs; Medical Payments; Personal Injury; Advertising Injury; and specialized liability protection for specific business types



Commercial Auto
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As a business owner, 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 -- liability, collision and comprehensive, medical payments (known as personal injury protection in some states) and coverage for uninsured motorists. 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.


BOPs and CPPs
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BOP

A BOP—a Business Owners Policy—can protect your small business against today’s most common risks. Fire, burglary, liability and business interruption losses are all covered under a BOP.

Since a BOP is prepackaged, there is only one policy to review and it can be more cost effective than purchasing separate policies. Additional coverage can be added in the form of endorsements or riders.

Since a BOP insurance policy is specifically designed for small and medium-sized businesses, the type of business can influence eligibility. Normally, companies with 100 employees or fewer and revenues of up to about $5 million or less are candidates for a BOP. Some types of businesses, such as restaurants, may be ineligible for a BOP because of the specific risks inherent in the business and may need to consider buying the individual coverages separately.

 

Combining Three Insurance Policies into One Package

In a single, convenient package, a BOP provides the core insurance that most small businesses need, including:

  • Property Insurance—Protection for your building or office space, as well as property owned by your business, such as equipment and inventory.
  • Liability Insurance—Coverage for costs that arise if someone is injured at your business or by using your products or services.
  • Business Interruption Insurance—Also known as Business Income insurance, this coverage replaces lost revenues in the event that your business has to shut down due to fire, wind damage or other covered losses.

 

You Can Also Tailor a BOP to Meet Your Needs

It’s important to understand that a BOP doesn’t cover all risks associated with running a small business and the coverage limits are usually lower. If you have employees, you may be required to carry workers compensation insurance, depending on your state. If you have a business-owned vehicle, you’ll need coverage beyond your personal car insurance. You might also consider insurance for relatively new risks such as computer system break-in or business identity theft.

There are unique risks associated with your small business; an insurance professional can help you find the coverages that are right for you. Here are some other types of insurance to explore and ask about:

  • Professional Liability Insurance
  • Employee Practices Liability Insurance
  • Business Vehicle Insurance
  • Workers Compensation
  • Health and Disability
  • Flood and Sewer Back-up
  • Cybersecurity Insurance
  • Terrorism Insurance

 

Increasing Your Coverage with Excess and Umbrella Insurance

You can increase the protection provided by your BOP and other business insurance policies by adding an excess liability or umbrella insurance policy. This type of supplemental policy boosts your coverage beyond the limits of your primary insurance policies. Depending on the policy, your umbrella coverage is designed to broaden and increase coverage, “filling in the gaps” left by other types of liability insurance by covering additional areas of risk and even reimbursing you for deductibles. Your insurance professional can advise you about combining an umbrella policy with a BOP or other business insurance.



CPP


For small businesses without specialized risks, a Business Owners Policy—or BOP—may offer the basic property and liability coverage that you need. But if your company is growing in size and complexity—or you face specialized risks due to the nature of your business—you may want to consider purchasing a Commercial Package Policy, or CPP for short.

 

Customized Insurance Under One Policy

Like a BOP, a CPP enables you to bundle various types of coverage within a single policy. However, while a BOP has limitations—it is only available for certain types of smaller businesses and covers only a few types of risk—Commercial Package Policies are available for a wide range of businesses, and can be better customized to the specific needs of your business. Most CPPs begin with:

  • Property Insurance—Covers damage or destruction of buildings, equipment, inventory and more.
  • General Liability Insurance—Covers costs if someone is injured at your business or from using your product or service.

From there, you can add a range of coverages to your CPP, including:

  • Business Income Insurance—Also known as Business Interruption insurance, this replaces lost revenues and covers extra expenses in the event that your business has to shut down or relocate due to fire, wind damage or other covered losses.
  • Business Vehicle (or Fleet) Insurance—Covers vehicles owned and used by your business.
  • Business Crime Insurance—Covers losses from burglary, computer fraud, employee dishonesty and other business crimes.
  • Commercial Umbrella Liability—Increases and broadens liability coverage, filling in gaps left by other coverages.
  • Electronic Data Processing Coverage—Covers costs associated with the loss or damage of electronic data processing media or equipment.
  • Equipment Breakdown—Also known as Boiler and Machinery Insurance, this covers losses from the malfunction of heating, electrical, air conditioning, telephone systems and other equipment.
  • Employment Practices Liability—Covers costs tied to disputes with employees over termination, discrimination, sexual harassment and other employment issues.
  • Inland Marine—Covers the transport of goods over water and land, providing comprehensive protection for assets that are moveable or mobile in nature, while in transit—such as from a warehouse to a store—or in storage.
  • Pollution Liability—Covers costs related to pollution, including clean-up and personal injury.

A range of other types of insurance—covering professional liability, supply chain risk, terrorism, farming or ranching losses, and more—can also be included in a CPP.

 

What a CPP Doesn’t Cover

A CPP can provide your business with coverage against a broad range of risks. That said, it’s important to recognize that your CPP will not include:

  • Directors and Officers (D&O) Liability
  • Health and Disability
  • Life Insurance
  • Workers Compensation

These coverages must be purchased separately; discuss your additional insurance needs with your insurance professional.



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