Even the best-run business can suffer a financial loss due to unexpected events. Commercial insurance offers coverage to help protect against those losses. A broker agent can review your current business insurance with you. They will compare limits, exposure bases and policy wordings to identify gaps in coverage. They can also suggest proven loss control methods to help minimize your risk.
Business auto insurance covers cars, trucks and vans owned by a company. It is important for businesses that regularly transport people or goods to purchase this type of coverage. Commercial auto policies usually have higher liability limits than personal policies. Many states require that businesses have uninsured/underinsured motorists and medical payments coverage on their auto policies.
Some policies also offer collision and comprehensive coverages. Some insurance plans also provide rental reimbursement, which can cover the cost of a car rental while an insured vehicle is getting fixed after an accident.
In some situations, a business may use an employee’s car for work and needs to obtain hired and non-owned auto insurance. It is available with a BACF policy and typically covers vehicles up to the employee’s personal insurance limit. It is a good policy to consider for landscapers who often transport equipment in rented or leased cars. Talk to an insurance agency Newark DE about how to properly structure this.
Business Owners Policy (BOP)
A BOP is a bundle of insurance policies that cover business property and liability protection. It can be written as an all-risk policy or named-peril coverage. The cost of the BOP is determined by various attributes, including the size and type of business, claims history and insurance requirements.
Insurance providers have designed the BOP to cover most small businesses’ risks. It can be less expensive than purchasing each policy. Typically, smaller office-based companies (lawyers, real estate agencies and other professional service providers), some retail stores and restaurants, dry cleaners, barber shops and fitness centers qualify for the BOP.
Businesses with higher risks, such as some types of contractors and bars or nightclubs, may require a more tailored commercial insurance package. BOPs are customizable, and various endorsements can be added to them. These include worker’s compensation, professional liability and commercial auto coverage. However, these additional policies usually must be purchased separately.
Commercial Package Policy (CPP)
Commercial package policies, also known as CPPs or business owners policies (BOPs), combine two of the most popular business insurance coverages: commercial general liability and commercial property. These bundled policies can lower costs and broaden the scope of protection businesses receive, especially when they include additional coverages that aren’t available or included in other policy types. For example, if your company’s products damage customer’s property or cause them injury, the commercial product liability coverage of a CPP can help pay for legal expenses and repairs.
This type of specialized policy is ideal for small- or mid-sized companies with less complex liability needs, such as light manufacturing and car wash facilities. However, larger and riskier businesses may find more comprehensive protection in a separate policy that includes umbrella or commercial auto coverage or incorporates workers’ compensation or life and group health insurance. The optimal policy for your particular business risks and coverage needs can be determined with the assistance of insurance specialists.
Commercial general liability insurance (CGL) offers protection against the cost of accidents that can happen as your business operates. It covers third-party bodily injury, damage to property, and personal and advertising injury (libel, slander). It also helps pay for the legal defense costs and settlement bonds or judgments in case of a lawsuit.
While you run your business with care, accidents can occur. Your customers might slip and fall in your store, or a product might malfunction on its way to a client. General liability insurance can help preserve your business assets by covering the associated expenses.
CGL policies can be written on either a claims-made or an occurrence basis. Claims-made policies only cover losses reported to the insurer during the policy period. On the other hand, an occurrence policy covers losses during the coverage period, even if you are unaware of them at the time of the loss. Additional coverages such as workers’ compensation, employment practices liability, management liability and pollution insurance may be included in your CGL policy or obtained separately.