Commercial Package Policies
The following is a list of standard business insurance coverages and a brief explanation of what they typically include. (Note: the descriptions here are for general informational purposes only. For specifics about the types of insurance coverages, limits, and what your policy contains, contact your local insurance agent.)
Property—this coverage helps protect your business from major financial loss when your property and/or physical assets are stolen, damaged, or destroyed in a fire or natural disaster. Many property insurance policies also protect business property when is being used at a location other than your primary place of business.
General Liability—this coverage protects your business from another person or company’s claims of bodily injury due to negligence, the products you make, or services rendered; property damage arising from normal business operations; and advertising. This coverage includes attorney fees, associated medical costs, judgements or settlements, and more. The following are examples of the types of claims that fall under each category and is not a complete list:
- Bodily Injury—this coverage includes physical injuries to customers or bystanders. Examples include a customer slipping on a newly waxed floor, a passerby falling on the ice outside your door, or patrons becoming sick from food poisoning. Note: Employee injuries are not covered by general liability insurance. They are covered by Workers’ Compensation Insurance.
- Property Damage and Data Loss—this coverage includes accidents that occur while working at a customer’s location. Examples include spilling coffee on a client’s server causing damage and loss of data, inadvertently puncturing a gas pipe while installing some equipment, or bumping into racks of merchandise causing the items to fall and break.
- Advertising Injury—this coverage includes claims of damages to a person’s character or reputation. Examples include libel, slander, customer discrimination, and similar accusations. It also includes advertising claims, for example, using artwork, photos, or logos that you did not create or do not have permission to use.
Glass—most businesses do not need extra coverage for glass and simply rely on the standard coverage. Your company may want to consider extra coverage or higher limits if your building has an extensive amount of exterior glass, skylights, or illuminated business signs. Talk to your insurance agent about the type and amount of glass coverage you may need.
Crime—while most business owners don’t want to consider it, crime can and does happen. Sadly, it is not always an anonymous criminal committing the crime—sometimes it’s an employee forging the owner’s signature on checks or improperly transferring funds. A commercial crime policy also covers computer fraud, kidnap, ransom, or extortion requests, as well as counterfeiting and securities issues.
Inland Marine—the unusual name for this coverage evolved from insurance companies that were originally protecting seafaring cargo. Today, inland marine covers your property and material during transit, as well as the property of others at your location or during transit. Examples include fine art or medical equipment that is damaged during delivery to the customer, sales reps who have laptops stolen on a sales call, or construction equipment that is damaged on the job site. This coverage is typically over and above standard insurance limits.