Other Types of Business Insurance

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Overview Liability insurance doesn't cover everything. Many companies need to supplement their commercial general liability with coverage that will address any gaps in their current policy, especially if the company risks facing particular types of claims.
Be sure to pay special attention to any gaps or potential overlaps in coverage. When more than one policy covers a given incident, the insurer may try to assign the claim to the policy providing less coverage. Make sure any overlapping coverage results in fairly equal reimbursement levels. Clearly defined policies will help to minimize these redundancies.

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Additional Coverage Umbrella liability insurance acts as an excess liability policy, providing additional coverage above and beyond that of primary policies. In addition, umbrella insurance may provide coverage for areas where you are not insured, coming into effect once a certain deductible is met. This coverage is almost always worth considering since it provides a valuable safety net for you and your business. However, umbrella policies are often not standard and there can be exceptions to coverage.

Business interruption insurance will reimburse you for the loss of earnings (profit) due to an interruption in your operations. In situations such as the destruction of your business location, this coverage could provide you with the resources to take care of utilities, payroll, loans, and other obligations while the business is in the process of being restored.

Commercial auto insurance serves as protection against liability for bodily injury and property damage relative to your ownership, maintenance, or use of vehicles involved in doing business. Coverage also includes attorney fees, court costs and payment to the injured person. Trucks, certain motorized equipment, buses, and many types of vehicles can all be afforded coverage, in addition to the standard automobile. You may also need non-owned and hired auto liability coverage for vehicles your employees use or that you rent or borrow.

Product liability insurance covers products you may manufacture or sell, or covers your services if you are, for instance, a mechanic or house painter. A minimum of $1 million is the usual recommended coverage for businesses dealing with the general public. These policies add another layer of protection should a product liability suit arise, generally have low costs, and have become common practice for companies in food retailing, wholesaling, marketing and manufacturing.

Errors and Omissions covers inadvertent mistakes or failures that cause injury to a third party. The act must actually be an error, however, and not merely poor judgment viewed in hindsight.

Director?s Liability Insurance covers certain "wrongful acts," such as errors, omissions, misleading statements and negligence committed while performing the duties of a director or officer.

Inland marine covers high risk, mobile items of stated value that are not covered by most commercial property policies. Inland marine coverage can protect valuable tools if you're a mechanic or tradesman, artwork if you operate a gallery, or a jeweler's inventory.

Credit life is the name given to a class of insurance used by retailers selling larger ticket items to consumers on credit. It insures that you'll be paid should your customer die before a debt is paid off.

Fire and extended coverage: Basic fire policies cover fire and lightning but exclude theft. Extended coverage, which is almost always purchased with a standard fire policy, cover hail, windstorm, and vandalism as well as fire. Policies can be purchased that will also protect your accounts receivable records, computer files, currency, securities and valuable papers.