Commercial
Property Coverage
Property Insurance is any type of insurance that indemnifies
an insured who suffers a financial loss because property
has been damaged or destroyed. Property is considered
to be any item that has a value. Property can be classified
as real property or personal property. Real property
is land and the attachments to the land, such as buildings.
Personal Property is all property that is not real property.
The Building and Personal Property coverage form is
used to insure almost all types of commercial property.
The insuring agreement in the Building and Personal
Property coverage form pays for physical loss or damage
to covered property at the premises described in the
policy when caused by or resulting from a covered cause
of loss.
Commercial
General Liability Coverage
The Commercial General Liability Policy provides insurance
protection to pay damages for bodily injury or property
damages for which the insured is legally responsible.
The policy provides coverage for liability arising from
personal and advertising injury, coverage for medical
expense is also provided. The policy also covers accidents
occurring on or away from the premises. Coverage is
provided for injury or damages arising out of goods
or products made or sold by the named insured. The insured
is the named insured and the employees of the named
insured. However, several individuals and organizations,
other than the named insured, may be covered, depending
upon certain circumstances specified in the policy.
In addition to the limits, the policy provides supplemental
payments for attorney fees, court costs and other expenses
associated with a claim or the defense of a liability
suit.
Commercial
Automobile Coverage
The liability coverage of the commercial auto policy
provides protection against legal liability arising
out of the ownership, maintenance, or use of any insured
automobile. The insuring agreement agrees to pay damages
for bodily injury or property damage for which the insured
is legally responsible because of an automobile accident
resulting from the ownership, maintenance, or use of
a covered auto. The insuring agreement also states that
in addition to the payment of damages for which the
insured is legally liable for, the insurer also agrees
to defend the insured for all legal defense cost. The
insuring agreement states that the insurer will pay
all reasonable and necessary medical and funeral expenses
incurred by an insured because of bodily injury caused
by an accident. The insured is the named insured, the
insured's employees and guests, and any other person
occupying a covered auto. These payments are made without
regard to fault. Comprehensive coverage provides protection
against loss or damage to a covered auto resulting from
loss other than a collision or upset. This coverage
also provides supplemental payments for transportation
expenses in the event of total theft of a covered auto
or a non-owned auto. Coverage begins forty-eight hours
after the theft.
Umbrella
Liability Coverage
Umbrella liability insurance provides excess liability
coverage over the insured's primary liability policies.
Most umbrella liability policies provide coverage that
is broader than the insured's primary policies. Umbrella
policies have three functions: (1) To provide additional
limits above the each occurrence limit of the insured's
primary policies; (2) To take the place of primary insurance
when primary aggregate limits are reduced or exhausted;
and (3) To provide broader coverage for some claims
that would not be covered by the insured's primary insurance
policies, which would be subject to the policy retention.
Most umbrella liability policies contain one comprehensive
insuring agreement. The agreement usually states it
will pay the ultimate net loss, which is the total amount
in excess of the primary limit for which the insured
becomes legally obligated to pay for damages of bodily
injury, property damage, personal injury, and advertising
injury.
Thoroughly reading your policy is the only way to know
precisely what is covered and what is excluded. Not
all Commercial Insurance policies will cover exactly
the same causes of loss. This is due to vast number
of endorsements and forms that can be added to a policy,
every policy will differ depending on what business
or operation it covers.