commercial insurance Archives | Leliaert Insurance Agency

What is a Commercial Insurance Package vs a Business Owners Policy?

If you are opening a small business, you might be wondering, what is commercial insurance, and do you need it? And, what is the difference between a commercial insurance package and a standard Business Owners Policy? The biggest difference between the two is the extent to which a policy covers your business’s unique activities and risks.

Learn everything you need to know about the differences between a business owner’s policies and commercial package policies. Find out what commercial packages offer that business owners’ policies do not – and if your business needs the coverage. And, discover how commercial packages customize coverages based on your business’s needs and risks.

What is a Commercial Insurance Package vs Business Owners Policy (BOP)?

What is a commercial insurance package policy (CPP) and does your business need this type of coverage? Whether or not your business presents a high enough risk to warrant CPP coverage is dependent on the size of your business and the specific risks associated with your business activity. Every small business needs to carry basic coverage, as included with a Business Owners Policy (BOP), but the same is not true for CPP coverage.

BOP coverage provides three essential forms of protection: property damage, liability, and business interruption insurance. CPP coverage extends to the aspects of your business that are non-standard from other businesses, and present a higher risk. And, a commercial insurance package policy is more affordable for small and medium-sized businesses than purchasing separate policies for each specific need.

Business Owners Policy (BOP) Explained

Business Owners Policies include the core essentials for just about every small business in any industry. In general, a BOP includes coverage for general liability claims, damage to your business’s property and building, and wages lost as a result of business interruption. Many small businesses in the United States find their BOP perfectly sufficient for their business-coverage, whereas growing businesses and those with specialized risks might need the extended coverage offered by a commercial coverage package policy.

General liability insurance is fundamental for every business and covers the legal costs and court fees associated with third-party claims of damage or injury for which your business is responsible. If your business property gets damaged as a result of vandals, fire, flooding, or other natural disasters, property insurance coverage takes care of the costs. And, in any case, a BOP provides coverage for wages lost due to business interruption, such as property damage.

BOP coverages are specifically designed to serve the most common needs of businesses, but many areas of the country experience natural events that are not covered by your BOP. For example, businesses operating within hurricane zones of the United States, and areas prone to frequent flooding likely must purchase extended coverage at an additional premium.

A BOP is great for small businesses that engage in low-risk business operations. Insurers often instill a cut-off limit on the size of a business’s property that they will cover under a BOP. For example, many insurers will not offer BOP property insurance to cover facilities that exceed 25,000 square feet.

Commercial Insurance Package Policy (CPP) Explained

The most common reason that businesses move from a BOP to a CPP is growth and risk exposure. Whereas a BOP only includes the three fundamental business coverages (property insurance, general liability, and business interruption), a CPP accommodates much more customization to create a policy designed for your unique risks. For example, unlike a BOP, you can create a CPP that bundles professional liability coverage, commercial auto insurance, and many others. A CPP, however, cannot include such coverages as workers compensation, directors and officers insurance, or key person insurance.

Do You Need a Business Owners Policy or Commercial Package Policy?

Both types of insurance policies provide a way of combining essential coverages into a bundled package to save your business money. And, at the end of the day, you need a policy that provides the coverage you need at a price you can afford. But, being underinsured, you run the risk of further financial losses and burdens than if you take out a CPP.

So, it all depends on your business’s activity, assets, and risks associated with daily operations. If your business is growing or engages in specialized risks, it is important to purchase a policy that includes the necessary coverage. Talk to an insurance associate for a free consultation on a BOP vs CPP, and to learn more about what a commercial insurance package policy is.

What is Indemnity Insurance? A Total Guide for Professionals – 2021

Indemnity insurance provides coverage to losses and damages incurred by professionals and businesses. Some professions are legally required to have this type of coverage, such as attorneys, medical practitioners, and more. It is most prevalent in cases claiming your practice or business at fault.

Learn about how indemnity insurance works and whether you need this type of coverage. Find out what it generally covers and when it is legally required to carry this coverage. And, see how it provides flexibility for professionals, certain businesses, and service providers.

Your Total Guide to Indemnity Insurance and What it is For – 2021

If your business or professional entity incurs damages or losses, indemnity insurance can provide compensation. This type of insurance serves in some cases to exempt an entity from liability regarding a claim of fault or misjudgment that results in a claim of loss or damages. Some of the most common entities that acquire or are required to carry indemnity insurance include legal service providers, financial services, financial advisors, and medical service providers.

In the event of a medical malpractice claim, indemnity insurance provides compensation to cover the costs of loss and damages. In this policy, the insurance company agrees to make the policyholder fiscally whole as far as they incur losses as a result of their practice. On the other end, the insured party agrees to pay a monthly or annual premium.

It is Liability Coverage: How Does it Work?

This type of coverage is available as an addition to your existing commercial or business liability insurance. And, many professionals and service providers must have supplemental indemnity coverage. It is an extra form of insurance that is specific to professional practitioners and is often called professional liability insurance.

It is most relevant if someone to whom a service is provided, claims negligence or loss as a result of a failure for the service provider to perform the agreed-upon service. Unlike general liability insurance, it does not cover losses as a result of damage to property, bodily harm, or compensation for lost wages.

This type of insurance can cover court fees, attorney fees, and other legal costs associated with a civil claim against a professional business entity. Indemnity insurance kicks in to offer compensation for the costs of litigation and any damages that the entity is required to pay.

Unlike other forms of coverage, this coverage is catered to each policyholder. Each insurance provider has different areas of focus when it comes to indemnity. Talk to a Leliaert insurance associate today to customize the right indemnity insurance policy for your business or professional entity.

What is Commercial Insurance? Total Guide to Business Coverage – 2021

Commercial insurance comes in several forms and serves to cover losses associated with your business activity. It protects the leadership of a business, as well as a business’s employees from incurring losses as a result of a workplace accident. And, it can make the difference between staying in business through unforeseen hardships, or shutting the doors for good.

Learn everything you need to know about commercial policies for businesses of every size and industry. Find out about the different options available for protecting your commercial enterprise from the full brunt of liability costs. And, discover how this type of business insurance can be a vital resource in the face of legal liability associated with an incident involving your business and employees.

The Total Guide to Commercial Insurance and What it Covers in 2021

Different types of commercial insurance protect your business from different kinds of risks. Also called business insurance, it covers many of the brutal expenses that your business incurs when being held liable for losses. Instead of shouldering the full burden of the risk, business insurance provides a buffer between your business’s liable expenses and its profits.

Business insurance typically carries a higher coverage limit than that of a personal insurance policy, since it has to provide coverage for numerous employees and business assets. Depending on the type of business, you can get coverage for your business’s financial wellbeing, reputation protection, and employees. Since every business is unique in the risks associated with its operation, every business must choose from a menu of coverage options available to create a policy that serves the unique needs of your business.

The Most Common Type of Commercial Business Policy

When it comes to a basic business insurance policy, many businesses begin with a standard Business Owners Policy or BOP. This basic policy provides three essential forms of business-coverage, including commercial property, general liability, and business income insurance. Every business needs these three types of coverage, and many businesses need additional coverage beyond that which is in a BOP.

BOP: Commercial Property, Business Liability, and Income Insurance

Commercial property insurance provides coverage for the infrastructure and physical property of your business. This type of coverage applies to equipment, like computers, electronics, tools, machinery, furniture, and accounts receivable. In the event of damage to your physical property, a BOP policy kicks in to help your business pay for the expenses.

General liability insurance kicks in to protect your business to cover damage claims. It covers claims of slander, advertising mistakes, bodily injury, and property damage. For example, if one of your employees accidentally drops hot soup on a customer, general liability insurance covers the expenses associated with damages awarded to the claimant.

The third type of coverage provided in a BOP is business income insurance. This type of insurance provides financial assistance to your business in the event of property damage. For example, if a car crashes through your office wall, it covers the rental cost for a temporary office.

Other Commercial Insurance: Auto, Workers Comp, and Cyber Liability

Apart from a BOP, your business may need coverage specifically catered to your commercial activity. Many insurance providers offer niche coverage options for businesses with specific needs. But, most providers offer businesses the option to extend their commercial policy with auto, workers compensation, or cyber liability insurance.

Commercial auto coverage is an essential addition to your policy if your business involves working with automobiles. Commercial auto coverage is similar to personal automotive insurance. The difference is it covers multiple vehicles in the event of a breakdown of equipment. It provides liability coverage for business-related auto accidents where injury or damage occurs.

Workers’ compensation insurance covers business expenses associated with lawsuits involving worker-related injuries. Many states legally require businesses to have workers’ compensation insurance if the operation involves construction, manufacturing, or engineering. In the event of a lawsuit, it covers medical expenses and wage loss, damages, and litigation fees for the defense.

More businesses operate digitally, meaning cyber liability insurance is more necessary than ever before. If your business operation involves managing digital assets, such as personal or financial information, cyber liability is essential. If your business’s cybersecurity is breached, compromising digital assets, and damaging digital infrastructure, cyber liability insurance kicks in to cover the expenses associated with the fallout. It can cover the costs associated with lawsuits regarding the compromising of personal information, as well as many other expenses.

Get Help Creating a Policy to Fit Your Business

Every business is different in the coverage it needs – but every business needs to be covered. There are many other forms of business coverage that are not mentioned here, and an associate can help you create a policy to fit your business needs. Talk to a Leliaert Insurance associate today for expert help in creating the right commercial insurance plan for your business.

Commercial Umbrella Insurance: Should Your Business Have It?

If your business owns a large number of assets, you should consider getting commercial umbrella insurance. If your business maxes out its general liability coverage, umbrella insurance provides additional coverage for predetermined liability risk. And, one of the most common risks to your general liability is property assets.

So, does your business present the level of liability that requires extra protection? Learn everything you need to know about commercial umbrella coverage for your business. Find out what it covers and when this coverage kicks-in. And, see if your business presents the kind of risk that is well-served by having umbrella coverage.

Commercial umbrella insurance is good to have if you have assets. The regular liability on your policy is usually enough, but bad things happen.

Commercial Umbrella Insurance: What is It and How Does it Work?

Commercial umbrella insurance is designed for liability coverage over that of your general liability coverage. It is especially useful for businesses at high risk of litigation, and those with a large volume of property assets. But, to acquire umbrella coverage, your business needs underlying coverage, as well.

The nature of your business activities and assets determine its need for extra umbrella coverage. Some coverage providers require different levels of underlying coverage before an umbrella policy pays out. The underlying requirements almost always include general liability insurance and can include workers’ compensation coverage, commercial auto liability coverage, and other forms of coverage.

How Does Umbrella Coverage Work?

Commercial umbrella coverage works by paying-out when your business’s underlying coverage runs-out. In this way, it is almost identical to personal umbrella coverage, which increases the coverage you receive in your home, renters, and auto insurance. But, commercial umbrella policies increase the amount covered in your underlying policies, for things like legal fees, costs of damages occurred, and medical bills.

What is Covered Under a Commercial Umbrella Policy?

A personal umbrella insurance policy extends the coverage in your underlying policies, but businesses present a different risk to insurance companies than that of individual homeowners. So, commercial umbrella policies provide extra coverage on specific types of liability. And, even umbrella policies can only offer coverage up to a point.

In general, commercial umbrella policies extend a business coverage on certain types of liability, from $1 million to $2 million on top of your underlying coverage. So, if your liability exceeds your umbrella coverage limits of between one or two million dollars, you’re on your own.

As stated above, umbrella coverage does not cover every claim, across the board. Instead, it provides specific coverage on some of your existing liability covered under your general liability policy. Take the examples of a snow-plow driver versus a real-estate lawyer:

One day, the snow-plow driver is in a hurry to get home, so they forget to finish plowing a portion of their route. Someone slips falls and sues the snow-plow company for liability over the companies general liability coverage limits. In this case, umbrella coverage kicks-in to cover the additional damages that exceed the general liability.

The real-estate lawyer, on the other hand, makes a mistake in an audit that values a property at $500,000, instead of $1 million, resulting in a liability lawsuit. If the lawyer’s professional liability insurance is exceeded by the cost of damages that occurred, umbrella insurance does not cover the balance. In this case, the law firm requires Errors & Omissions (E&O) insurance.

Does Your Business Need Commercial Umbrella Coverage?

How efficacious it is for your business to purchase commercial umbrella insurance is dependent on the level of liability risk inherent in your business’s activities. As a general rule-of-thumb, there is a high risk if your business engages in a high amount of interactions with customers or clients. The highest risk is reserved for businesses that engage in using heavy machinery and hazardous equipment – especially in dangerous environments, like deep-water drilling.

The more people that interact with your business, the more liability risk your business presents to an insurance company. Therefore, umbrella insurance can help in the event your general liability policy coverage is exceeded by the costs of damages that occurred. In the same way, it can help if your business operates on a property that is owned by a third party, like a landlord.

Retail stores, restaurants, industrial manufacturing facilities, and hotels present the most risk because of the high levels of customer interactions, and high-risk associated with the nature of the work.

Does your business present a high enough risk to validate getting commercial umbrella insurance? Talk to an insurance specialist today for a free consultation and liability risk assessment.

What is Commercial Insurance and Does Your Business Need It?

You know that health insurance, car insurance, and life insurance is important to you – personally. But, can you say the same for your business? If the answer is anything, but a resounding ‘yes’, it’s time you should be asking, “what is commercial insurance and what should I know about the coverage policies available?”

In this article, you learn everything you need to know about commercial insurance policies and the options available to small business owners. Discover the many liability issues that exist for businesses in the event they are not covered by a commercial policy, and which policy options your business needs.

What is Commercial Insurance? The Small Business Guide for 2020

The smaller your business, the easier it is to put off the need to cover your business with commercial insurance. No matter how large or small the operation – if you own a business, you need commercial insurance. So, what is commercial insurance, and why is it so important for your business to have it?

Commercial coverage insures your business against a wide variety of risks associated with your day-to-day operations. Business policies are designed to provide coverage to the business, employee workforce, and owners. If you own a business without commercial coverage, all of the risk and liability falls on your personal insurance.

It only takes one incident to financially destroy, not only your business, but your personal finance, credit, and more. Without business insurance all of the risks fall on your shoulders, placing you at direct risk for personal bankruptcy in the event of an unfortunate and unforeseen business-related accident.

Unlike personal insurance plans, there is no ‘one-size-fits-all’ solution when it comes to business. Commercial business insurance is like an al-a-carte menu. You only pick the coverage options that your business needs.

General Liability Insurance

Liability insurance is the bedrock of every business’s coverage, by protecting your business from going-under from legal fees and settlements. If your business is responsible for the injury or harm of an employee or bystander, liability insurance provides coverage for legal fees and litigation costs.

Errors and Omissions Insurance

General liability insurance, however, does not cover legal fees associated with clients suing your business for harm or damages rendered through professional services. If you are sued for something that happens in the course of your professional service, you need professional liability, or Errors and Omissions insurance.

Worker’s Compensation Insurance

Each state has different laws regarding workers’ compensation insurance. Even so, in all 50 states, every business has to offer some degree of coverage to employees in the event of an on-the-job accident. Also, by providing workers compensation, employees are contractually prohibited by law from suing your business for injuries sustained while on the job.

Commercial Automotive Coverage

If your business involves a vehicle fleet of 10 or more vehicles, commercial auto insurance is essential. The same logic applies, for a business’s fleet of vehicles, as for your own personal car insurance. It protects you from paying the entire cost out-of-pocket for injuries or property damage sustained by anyone involved in an accident with the business’s fleet vehicles during business operations.

Data Breach Insurance

Small businesses are one of the biggest targets of online theft. Most business owners assume that they are not a big enough fish to be targeted by thieves. In fact, small businesses are, often, the easy and profitable targets. When it comes to cybercrime, a single incident can bankrupt your entire business.

Almost every business in the world stores important business information, client data, and sensitive financial records on dedicated servers. No matter how and where your business chooses to store its digital assets, data breach insurance provides vital coverage in the event of loss due to theft.

Business Owner’s Insurance Policy (BOP)

A business owner’s policy provides property coverage, liability, and legal protections from any lawsuits by employees or clients. Since, as a business owner, the ‘buck stops with you,’ a BOP provides much-needed protection. After all, just because the boss has to take responsibility, doesn’t mean everything is your fault, so a BOP offers coverage for the events that business owners can’t predict.

Commercial Property Insurance

Even as many businesses move more and more operations to digital platforms, the essential things still require physical infrastructure, equipment, and inventory. Regardless of the size of your facility, equipment, or throughput, commercial property insurance protects the nuts-and-bolts of your business. Property insurance policies cover financial losses associated with theft, fire, smoke damage, natural disasters, and vandalism to which the business property falls victim.

How to Find the Best Commercial Plan for Your Business

The question, “what is commercial insurance?” is answered by the needs of your commercial business activity. Some businesses need a policy that includes coverage for all of the above options, while others only require two or three. For detailed information on a policy that works for your business, contact a commercial insurance specialist.

What is a Commercial Insurance Package vs a Business Owners Policy?

What is a Commercial Insurance Package vs Business Owners Policy (BOP)?

Business Owners Policy (BOP) Explained

Commercial Insurance Package Policy (CPP) Explained

Do You Need a Business Owners Policy or Commercial Package Policy?

What is Indemnity Insurance? A Total Guide for Professionals – 2021

Your Total Guide to Indemnity Insurance and What it is For – 2021

It is Liability Coverage: How Does it Work?

What is Commercial Insurance? Total Guide to Business Coverage – 2021

The Total Guide to Commercial Insurance and What it Covers in 2021

The Most Common Type of Commercial Business Policy

BOP: Commercial Property, Business Liability, and Income Insurance

Other Commercial Insurance: Auto, Workers Comp, and Cyber Liability

Get Help Creating a Policy to Fit Your Business

Commercial Umbrella Insurance: Should Your Business Have It?

Commercial Umbrella Insurance: What is It and How Does it Work?

How Does Umbrella Coverage Work?

What is Covered Under a Commercial Umbrella Policy?

Does Your Business Need Commercial Umbrella Coverage?

What is Commercial Insurance and Does Your Business Need It?

What is Commercial Insurance? The Small Business Guide for 2020

General Liability Insurance

Errors and Omissions Insurance

Worker’s Compensation Insurance

Commercial Automotive Coverage

Data Breach Insurance

Business Owner’s Insurance Policy (BOP)

Commercial Property Insurance

How to Find the Best Commercial Plan for Your Business

We Represent The Best

Testimonials

Contact Us

What is a Commercial Insurance Package vs Business Owners Policy (BOP)?

Business Owners Policy (BOP) Explained

Commercial Insurance Package Policy (CPP) Explained

Do You Need a Business Owners Policy or Commercial Package Policy?

Your Total Guide to Indemnity Insurance and What it is For – 2021

It is Liability Coverage: How Does it Work?

The Total Guide to Commercial Insurance and What it Covers in 2021

The Most Common Type of Commercial Business Policy

BOP: Commercial Property, Business Liability, and Income Insurance

Other Commercial Insurance: Auto, Workers Comp, and Cyber Liability

Get Help Creating a Policy to Fit Your Business

Commercial Umbrella Insurance: What is It and How Does it Work?

How Does Umbrella Coverage Work?

What is Covered Under a Commercial Umbrella Policy?

Does Your Business Need Commercial Umbrella Coverage?

What is Commercial Insurance? The Small Business Guide for 2020

General Liability Insurance

Errors and Omissions Insurance

Worker’s Compensation Insurance

Commercial Automotive Coverage

Data Breach Insurance

Business Owner’s Insurance Policy (BOP)

Commercial Property Insurance

How to Find the Best Commercial Plan for Your Business

We Represent The Best

Testimonials

Contact Us

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