Commercial Coverage

Common Commercial Coverages

Commercial Auto

Covers liability for bodily injury and physical damage caused by vehicles used for business purposes. Factors such as ownership by a business, use in hauling goods for hire and gross weight determine a vehicle’s eligibility under a commercial auto policy. Except for auto-related businesses, motor carrier and trucking firms, a commercial auto policy addresses the auto insurance needs of most commercial entities. Some small vehicles used for business purposes can be insured on a personal auto policy.

Business Owners Policy (BOP)

Combines property and liability coverage in a package policy for eligible small businesses. A typical BOP covers commercial property, including buildings and contents, and liability protection for the operation of a business at its established location, its products and completed operations. Some policies include business income and extra expense coverage after an insured loss, but not workers compensation, professional liability or commercial auto coverage.

Business Interruption

Covers the loss of income suffered by a business as a result of not being able to use property damaged by an insured loss during the time required to repair or replace the property. From the time of the loss to when operations are restored, business interruption insurance helps replace lost profits and pay continuing expenses like rent and payroll.

Commercial Umbrella (Excess Liability)

Covers losses that exceed the limits of its underlying insurance policy. Umbrella insurance provides excess limits when the limits of underlying policies are exhausted by the payment of claims, covers exclusions and gaps in underlying policies and provides protection against some claims not covered by underlying policies.

Boiler & Machinery

Covers losses caused by mechanical or electrical equipment breakdown, including damage to the equipment, damage to the business’s other property and damage to the property of others. Lost income is not typically covered under a boiler and machinery policy and must be purchased through additional coverage.

Crime (Fidelity Insurance)

Provides protection against a number of criminal acts by employees, including employee dishonesty, theft of money or securities, forgery or alteration, computer fraud and burglary or robbery.

Kidnap & Ransom (K&R)

Covers loss by the surrendering of property as a result of a threat of harm to the insured, an employee or a relative or guest of the insured or the insured’s employees. K&R policies reimburse loss, such as extortion payments, loss of ransom in transit, crisis management consultant fees, travel fees and medical costs, rather than pay ransoms on behalf of the insured.

Builders Risk

Covers property in the course of construction. It typically applies not only to property at the construction site, but also to property at off-site storage locations and in transit. Builders risk protects against building damage and damaged or lost materials, fixtures and equipment used in construction or renovation. The estimated completed value of the project is used as the limit of coverage, and protection ends when the work is completed.