Business Coverage
- Why are insurance contracts so long?
- What is “All-Risk” insurance?
- Are all General Liability policies the same?
- How do we cover Contractually Assumed Liabilities?
- We are serving alcohol at an office event. Am I covered if someone gets hurt after the event and my company gets sued?
- In case of a failure of our products, what is covered under General Liability?
- What is Hired & Non-Owned Automobile Liability coverage (HNOA)?
- Who should consider professional liability policies?
- Why use a broker?
Why are insurance contracts so long?
There is nothing simple about an insurance policy. That’s because it’s a complex legal document. As in most contracts, there are two parties to this insurance contract: The insurance company that authored the contract and you, the policy holder. We help level the playing field by navigating the complexities.
A property insurance policy that covers all losses, except those identified as exclusions. Make sure you understand the exclusions.
Are all General Liability policies the same?
No. While there have been efforts at standardizing General Liability policies over the years, they can vary substantially, and should be modified significantly to fit your specific needs. The question: Has the General Liability policy been adjusted to fit your needs or the needs of the insurer?
How do we cover Contractually Assumed Liabilities?
Business contracts are one of the primary vehicles for transferring liability from one part to the other. The first step to understanding “how to cover” is knowing “what to cover from.” We serve our customers by being intimately involved in understanding these clauses and risk transfers, so that we can effectively and credibly answer the “How do we cover them?” We know which tools and insurance policies to use to cover these contractual liabilities.
In most cases your General Liability can also provide host liquor liability coverage. The key is to not charge for the alcohol. If you do, you’ll need to change your Liability policy. Make sure your insurance policy is right-sized to your needs.
In case of a failure of our products, what is covered under General Liability?
A liability policy is designed to provide protection in case your work, your products or your services cause bodily injury or property damage to others, but not your own lack of workmanship. For example: Mr. Jones hires Premier Decking to build a deck for his house. On a warm summer day, Mr. Jones was enjoying the deck with a few friends when it collapsed and tore away part of the wall to which it had been attached. Two guests were also injured. Premier Decking’s General Liability policy would pay for the consequential property damage to Mr. Jones’ wall, as well as for the injuries to the guests. The policy would not, however, pay Premier Decking to rebuild the collapsed deck.
What is Hired & Non-Owned Automobile Liability coverage (HNOA)?
This is one of insurance’s best buys — this coverage packs a “value punch” out of proportion with its cost. Many businesses have their employees drive their own cars on behalf of the business. What happens if the employee gets into an accident driving their own car while running an errand for the business? The first policy to respond is the employee’s personal automobile policy. Often, the injured party will decide to come after the business for the injuries and damages sustained. After all, the employee was driving for the business. The Non-Owned portion of the coverage provides automobile liability coverage to the employer for liabilities arising out of the use of automobiles not owned by the business.
The Hired portion of the coverage extends automobile liability coverage to vehicles we may rent in the course of business, provided the rental takes place within the U.S. and Canada. If you go further afield, let us know and we’ll help you.
If you do rent a vehicle for business, we suggest purchasing the Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) directly from the rental car company at the time of rental. In the event of damage to a rented vehicle, the car rental agreements typically require the renter to pay for (i) the repair of the car, (ii) the loss of rental opportunity while the car is in the shop, and (iii) any loss in value of the rental car. The last two items are not covered on commercial automobile policies. Nor are they generally covered by insurance plans offered through credit cards.
Who should consider professional liability policies?
Almost all service providers should carry professional liability. Lawyers, accountants, financial advisers, and marketing professionals are some examples. Anyone holding themselves out as having a unique and specific skill set, borne from advanced education or years of practice, and which could otherwise not be readily obtained from someone outside of that profession, should carry this insurance. In many cases, the consequences of a breach of professional duty may be characterized less in terms of bodily injury or property damage (which is most often the domain of the General Liability policy) and more in terms of economic harm caused to a third party.
The managing of risk is complicated and requires an expert to help you navigate the coverage options so that you are covered correctly to avoid the potentially catastrophic impact of having the wrong insurance. Even deeply expert brokers cost businesses no more than buying insurance direct.