Commercial Business Lines Insurance
There are numerous kinds of commercial insurance policies businesses should consider. While each company is unique and needs coverage tailored to its specific risk profile, there are standard “buckets” of coverage, summarized below.
Cyber insurance may cover a variety of both liability and property losses that result from a business engaging in various electronic activities, such as selling online or collecting data within its internal electronic network.
Cyber policies can cover a business’ liability for a data breach in which the firm’s customers’ personal information, such as Social Security or credit card numbers, is exposed or stolen by a hacker. The policies may cover a variety of expenses, including notification costs, credit monitoring, costs to defend claims by state regulators, fines and penalties, and loss resulting from identity theft.
In addition, the Cyber can also cover costs incurred from business interruption, data loss/destruction, fraudulent transfer of funds, and cyber extortion.
- Business Owners Package (BOP):
BOPs can provide both property and liability coverage for eligible small businesses. They are written on special coverage forms that are generally very similar to their monoline property and liability form counterparts, but they typically have some unique features that make them especially advantageous for businesses that qualify.
- Technology Errors and Omissions (Tech E&O):
Tech E&O policies can cover both liability and property loss exposures to firms that design and sell technology products and services. Major liability insuring agreements include coverage for losses resulting from the insured’s technology offerings.
- Professional Liability:
Professional Liability insurance may protect traditional professionals (e.g., accountants, attorneys) against liability incurred as a result of errors and omissions in performing their professional services. Most policies only cover economic or financial losses suffered by third parties, as opposed to bodily injury (BI) and property damage (PD) claims.
- Commercial General Liability (CGL):
CGL insurance can protect insureds from most liability exposures other than automobile and professional liability.
- Directors and Officers Liability (D&O):
D&O is a type of liability insurance which may cover directors and officers for claims made against them while serving on a board of directors and/or as an officer. D&O can be written to cover the directors and officers of for-profit businesses, privately held firms, not-for-profit organizations, and educational institutions. In effect, the policy functions as “management errors and omissions liability insurance,” covering claims resulting from managerial decisions that have adverse financial consequences.
- Workers Compensation and Employers Liability:
Workers Compensation and Employers Liability is insurance that can provide coverage for an employer’s two key exposures arising out of injuries sustained by employees. Part One of the policy covers the employer’s statutory liabilities that are under the workers compensation laws. Then, Part Two of the policy covers liability arising out of employees’ work-related injuries that do not fall under the workers compensation statute.
- Employment Practices Liability (EPL):
EPL is a type of liability insurance that can cover wrongful acts arising from the employment process. The most frequent types of claims covered under such policies include wrongful termination, discrimination, sexual harassment, and retaliation.
DISCLAIMER: This content is not an exhaustive list of policies available, nor does it constitute an explanation of which claims may or may not be covered. This content is only meant to be used for general educational purposes. It in no way constitutes any advice or recommendation for coverage.