Commercial Lines Insurance:
Commercial Lines Insurance help keep
the economy running smoothly by protecting businesses from potential losses they couldn't
afford to cover on their own, which allows businesses to operate when it might otherwise be too risky to do so. Insurance that
protects businesses against losses as a result of such things as damage to property and injuries to employees.
Commercial Lines Insurance include products such as commercial auto insurance, workers compensation insurance, federal flood
insurance, aircraft insurance, ocean marine insurance and medical malpractice insurance. Commercial lines protect businesses against
potentially devastating financial losses caused by accidents, lawsuits, natural disasters and other adverse events. Coverage available
and premium costs vary by business type, size, and location.
While all commercial lines share some similarities, each policy will be tailored for the type of business being covered and the client's
unique needs. Suppose a structural engineering firm needs professional liability insurance. An insurance policy could protect the company
against claims of negligence in creating a building's plans, performing inspections, and supervising construction, as well as against
claims of failure to render professional services. The firm could purchase general coverage as well as specific, additional coverage
for each project, plus coverage for punitive damages.
Commercial lines aren't just for large corporations. Even a small, home-based business might need one or more commercial lines because
homeowners insurance provides limited or no insurance for business activities. For example, a home business might need commercial auto
insurance for a company-owned delivery vehicle, workers compensation insurance for the employee who drives the vehicle, property insurance
to cover business goods stolen from the home or vehicle, and liability insurance to protect against claims by any client who claims they
were harmed by the business's product.
Commercial General Liability Insurance Protects Your Business From Common Liabilities.
Your business faces liabilities every day. The only way to protect your assets is to carry adequate business liability insurance. A
Commercial General Liability (CGL) insurance policy is the first line of defense against many common claims.
General Liability insurance covers claims of bodily injury or other physical injury or property damage. It is frequently offered in a package
with Property insurance to protect your business against incidents that may occur on your premises or at other covered locations where you
normally conduct business. Commercial General Liability enables your business to continue operations while it faces real or fraudulent
claims of certain types of negligence or wrongdoing.
Commercial General Liability - The Most Basic Form of Business Insurance
If you have only one form of business insurance, it is most likely Commercial General Liability. CGL policies cover claims in four basic
categories of business liability:
- Bodily Injury
- Property Damage
- Personal Injury (including slander or libel)
- Advertising Injury
In addition to covering the claims listed above, Commercial General Liability policies also cover the cost to defend or settle claims -
even if the claims are fraudulent.
Business Liability insurance protects your business against financial loss resulting from claims of injury or damage caused to others by
you or your employees. (Some coverage may not be available on all policies or in all states.)
- Automatic Additional Insured. Coverage is automatically provided when required in a written contract, agreement or permit.
- Personal and Advertising Injury. Covers you for certain offenses you or your employees commit in the course of your business,
such as libel, slander, disparagement, or copyright infringement in your advertisements.
- Employment Practices Liability. Covers claims, including legal defense costs, for certain employment-related lawsuits brought
against you by your employees or job applicants ($5,000 limit where available).
- Defense Costs. Pays legal expenses for certain liability claims brought against your business regardless of who's at fault.
- Medical Expenses. Pays the applicable medical costs if someone is injured and needs medical treatment due to an accident on your premises.
- Premises and Operations Liability. Provides coverage for bodily injury and property damage sustained by others at your premises or as a result of your business' operations.
- Tenant's Liability. Protects your business against claims of damage due to fire or other covered losses caused by you to premises that you rent.
Note: This summary outlines in general terms the coverages afforded under some policies. Examine the policy carefully for any exclusions,
limitations, or any other terms or conditions that may specifically affect coverage. The terms and conditions of the policy prevail.
Business Liability Insurance Keeps You In Business.
Commercial General Liability Only Protects Against Some Business Liabilities.