We get it, business insurance can seem complicated and confusing. The good news is that our Bauld Commerical Advisors are here to help and will recommend the right mix of coverages for your business.
Business Insurance Coverages – Explained
To help you be better informed, here’s a comprehesive list of Business Insurance Coverages explanations.
Commercial General Liability
Commercial General Liability Insurance protects your business if you’re found legally liable for injuries or property damage caused by your product, completed work or accidents on your premises involving visitors or customers, or at your customer’s location.
What does Commercial General Liability Insurance cover?
A Commercial General Liability policy is a standard insurance policy issued to business organizations to protect them against liability claims for”
- Bodily injury (BI)
- Property damage (PD) arising out of premises
- Products, and completed operations
- Personal injury (PI) liability
Commercial Property Insurance
Commercial Property Insurance protects your physical assets such as building, stock, equipment and computers, including equipment removed from your premise. Examples of this could include your property being temporarily in tranist or while at a client’s business
What does Commercial Property Insurance cover?
Insurance that is used to cover any type of commercial property. Commercial property insurance protects commercial property from such perils as:
- Natural disaster
Who needs Commercial Property Insurance?
Businesses who own property related to their business.
Rental Income Insurance
Rental Income Insurance reimburses you for lost business income (rent) if the premises is damaged by a covered loss (storm, fire) and results in a loss of income or suspension of operations while repairs are made to the property.
What does Rental Income Insurance cover?
Rental Income Insurance provides several important types of coverage. Depending on the insurance company you work with and the options you choose, your policy may consist of some or all of these types of insurance:
- Actual Loss Sustained
- Gross Rents
- Rental Value
Errors and Omissions Insurance
Errors and Omissions Insurance (E&O) is a type of professional liability insurance that protects companies and their workers or individuals against claims made by clients for inadequate work or negligent acts causing financial harm.
What does Errors and Omissions Insurance cover?
Errors and Omissions Insurance coverage can help pay for lawsuit expenses, which might include:
- Lawyer fees
- Court costs
- Administrative costs
Who needs Errors and Omissions Insurance?
Businesses providing advice or professional services like engineers, architects or accountants.
Directors and Officers Liability Insurance
Directors and Officers Liability Insurance (often called “D&O”) is liability insurance payable to the directors and officers of a company, or to the organization(s) itself, as indemnification (reimbursement) for losses or advancement of defense costs in the event an insured suffers such a loss as a result of a legal action brought for alleged wrongful acts in their capacity as directors and officers.
What does Directors and Officers Liability Insurance cover?
Directors and Officers Insurance can be written to cover claims resulting from managerial decisions that have adverse financial consequences. The types of Directors and Officers includes:
- The directors and officers of publicly traded companies
- The directors and officers of privately held firms
- The directors and officers of not-for-profit organizations
- The directors and officers ofeducational institutions
Who needs Directors and Officers Liability Insurance?
Every for-profit or non-profit business that has Directors and Officers.
Cyber Liability Insurance
Cyber Liability Insurance is a product used to protect businesses from the liability that arises from the theft of data, especially customers data held on your systems. It also covers risks relating to information technology infrastructure and activities.
What does Cyber Liability Insurance cover?
Cyber Liability Insurance coverage can include:
- Data breach/privacy crisis management
- Multimedia/Media liability
- Extortion liability
- Network security liability
Who needs Cyber Liability Insurance?
Businesses who hold any client information as part of their business.
Tool Floater Insurance
Covers tools and equipment owned by the insured and usual to the business that are taken to job sites.
What does Tool Floater Insurance cover?
Tool Floater Insurance coverage is designed to cover movable property wherever it may be located. This could include:
- Hand Tools
- Specialty Tool
- High value tools
Who needs Tool Floater Insurance?
Businesses that have tools that will be taken off-premises as part of regular business activities.
Business Interruption Insurance
Also known as business income insurance, this is a type of insurance that covers the loss of income that a business suffers after a disaster.
What does Business Interruption Insurance cover?
The following are typically covered under a business interruption insurance policy after an insured loss:
- Fixed Costs
- Temporary Location
- Commission & Training Cost
- Extra Expenses
- Civil Authority Ingress / Egress
Who needs Business Interruption Insurance?
Any businesses that could experience a loss of income after a loss from an insured peril/event.
Builder's Risk Insurance
Builder’s Risk Insurance is a special type of property insurance which indemnifies against damage to buildings while they are under construction.
What does Builder’s Risk Insurance cover?
The Builder’s Risk policy will provide coverage for damage done to the insured structure from a wide variety of events. Damage from the following events will be covered by most policies:
- Wind (may be limited in coastal areas)
Who needs Builder’s Risk Insurance?
Buisnesses or Individuals involved in renovations or new home/building construction.
Equipment Floater Insurance
Equipment Floater Insurance is a form of property insurance that covers loss of or damage to equipment that is moved from one location to another.
What does Equipment Floater Insurance cover?
Coverages available through the Equipment Floater include:
- Scheduled Equipment
- Unscheduled Equipment
- Rented Equipment
- Office Contents
- Extra Expense
- Equipment Leased/Loaned to Others
- Rental Reimbursement
- Business Income
Who needs Equipment Floater Insurance?
Businesses that have equipment that will be taken off-premises as part of regular business activities.
Equipment Breakdown Insurance
This insurance provides coverage for loss due to mechanical or electrical breakdown of nearly any type of equipment, including photocopiers and computers.
What does Equipment Breakdown Insurance cover?
Equipment Breakdown Insurance covers the sudden and accidental, physical damage to equipment that requires its repair or replacement. It applies to equipment in the following categories:
- Air Conditioning and Refrigeration
- Boiler and Pressure Vessel
- Computer and Communications
- Renewable and Alternative Energy
- Production Systems
Who needs Equipment Breakdown Insurance?
Businesses who own or lease equipment such as: computers, telephones or even hot-water heaters.
Is Your Business Well Protected?
You work hard to make your business successful. Find out how our Bauld Commerical Insurance Advisors can help you better protect your business.