Business Coverage

Business coverage provides protection for the assets of a company including employees, property, and liability protection. Liability protection includes exposures developed by the entity’s operations—past, present and future. Coverage options are provided based on the specific nature of products and services offered by the company.

• Commercial Property—Provides protection for buildings, personal property business interruption, loss of earning or extra expenses incurred as the result of direct perils enumerated in the policy.

• Inland Marine—Provides coverage for specialized exposures such as, valuable papers, electronic data processing equipment, jewelers block, contractors equipment, installation floaters, or builders risk, to name as few.

• Commercial General Liability—Protects the entity from claims by others arising from operations (current or completed) caused by an occurrence of the entity.

• Workers Compensation—Provides coverage for employees for job related injuries in accordance with the laws of the state the business is located.

• Business Automobile—Provides liability and physical damage (damage to the company equipment) that the business owns or rents. It can also provided coverage for the entity for claims brought against it for occurrences for automobile claims which it could be held responsible.

• Commercial Umbrella/Excess Liability—Provides higher liability limits above those afforded by the scheduled policies on the umbrella policy or restricted to a specific coverage area.

• Professional Liability—Provides liability coverage for claims arising from a specific professional activity or profession. Coverage is often wriitten on a “claims –made” basis.

• Directors and Officers—Coverage is provided for claims of wrongful acts of the officers or directors of the entity. Coverage is most often written on a “claims-made” basis and can provide coverage for the “entity” in the insuring agreement.

• Employment Practices Liability—Since the mid 1990’s this coverage of employer actions related to employer responsibilities surrounding FEDERAL AND STATE employment law has been an integral part of employee management.

• Fidelity and Employee Dishonesty—Coverage is provided protecting the employers from the dishonest acts of employee embezzlement or theft of employers assets or funds. Coverage can be modified to protect the firm’s retirement program as required under the Federal provisions of ERISA.

• Fiduciary Liability—Protects the retirement plan from the manipulation of assets as defined by the Employee Retirement Income Security Act of 1974 (ERISA)

• License/Probate Bonds—Provides an indemnity amount in event the obligee is found not to have performed in accordance with the law.

• Surety & Payment Bonds—Protects the owner that at the end of the contract that it will have been performed in accordance with the contract provisions with all bills paid.

“Claims-made” versus “Occurrence” Contracts:

Most liability contract are written on an “occurrence” basis. That means that the policy that was in effect when the loss occurs is the policy to respond. As such, this is the most liberal form of liability coverage and makes transfer between carriers very easy.

The late 1970’s saw huge exposure changes taken place in the liability marketplace making some exposures too risky for this open ended form. Thus a new “claims-made: for was introduced. Under this new form, if the claim occurred after the “retro date” and was presented before the policy expiration date it was covered. New contract terms came into being such as: nose, extended discovery, tail and claim trigger. The application became a warranty document as a part of the policy and the basis of its issuance. The result was that continuity of coverage became a very important component for both past, present and future operations and a cause to review all terms of coverage more closely.

These forms are normally used in some variation for professional liability, directors and officers and to some other more difficult liability exposures. Ask us for a more thorough discussion of these and other insurance terminology.

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DISCLAIMER: Raymond F. Fox is licensed and authorized to conduct life insurance and securities related business in Indiana. This website is in no way to be construed as an offer for the sale of insurance or securities products in unauthorized states or countries. Registered representative of and securities offered through OneAmerica Securities, Inc., Member FINRA, SIPC, P.O. Box 1984, Indianapolis, IN 46206, (317) 285-1877, Fox and Fox is not an affiliate of OneAmerica Securities and is not a broker dealer.