Note that the CPP requires that you select at least two of the following commercial insurance coverages.
Commercial Property Coverages
Property Insurance provides coverage for loss or damage to real property (land and buildings) or personal property (everything else) at the described premises. A deductible will usually apply to each loss.
Buildings and Business Personal Property
Building coverage includes the actual building and structures, completed additions, outdoor fixtures, permanently installed fixtures, machinery, and equipment. Materials used to maintain and service the insured premises are also covered. Business Personal Property coverage includes property owned by the insured and located at the insured’s business, including furniture and fixtures, inventory and stock, property of others in your care, custody or control, and other similar items that are not explicitly excluded.
Coverage Extensions and Additional Coverages
Most policies provide coverage extensions and additional coverages, which may be subject to availability from carrier to carrier. Some optional coverages that may be available include
- Agreed value on buildings
- Business income and extra expense
- Electronic data processing
- Money & securities
- Spoilage – temperature change
- Glass – signs – awnings
- Fine arts
Commercial Crime Coverage
Unfortunately, crime is an everyday occurrence in today’s business community, but coverage is available to protect your business from theft by burglary, robbery, or employees. This covers money and securities, stock and fixtures both on and off the insured premises.
Employee Dishonesty Coverage
Employee dishonesty coverage protects an employer from financial (money and securities) or other property loss due to the fraudulent activities of one or more employees.
Equipment Breakdown – Boiler and Machinery Insurance
This optional coverage extends farther than protecting just a boiler. You may need this critical coverage, which is often excluded from a regular commercial property policy, to cover all your electronics systems, including telephone systems and computers. This insurance provides coverage for direct damage caused by the sudden and accidental events resulting in damage to property, expediting expenses (extra costs incurred to accelerate recovery after a loss), and business interruption.
Inland Marine Insurance
Inland marine insurance provides coverage for property in transit as well as property of others left in your care custody or control, employees property on-premises, contractors equipment and other unusual classes of property that are not generally found at a fixed location
Law and Ordinance
Provides protection when a substantial amount of a building is destroyed, and local ordinances require that the undamaged portion be demolished and rebuilt to meet current building codes. Coverages may include the cost of demolition, debris removal, and increased cost of construction in accordance with building code. Also included are expenses related to complying with the Americans with Disabilities Act.
General Liability Section
Commercial General Liability Coverages
General Liability insurance provides coverage for bodily injury or property damage for which the insured is legally responsible due to negligence or as required by contract. The policy also provides coverage for liability arising from personal injury and advertising injury, medical expenses, accidents occurring on the premises or away from the premises and products or completed operations. In addition to these limits, the policy pays defense costs.
Personal Injury or Advertising Injury
Personal injury refers to injury other than bodily injury and can include false arrest, malicious prosecution, invasion of privacy, and damage to reputation. Advertising injury refers to harm caused by an advertisement, such as libel or slander.
Products and Completed Operations Injury
Product coverage is provided for damages arising from products manufactured, sold, or distributed by the insured. Completed operations coverage is provided for accidents that occur after the insured’s operations have been completed or an item has been built, installed, or distributed for its intended use.
Medical expenses are paid for bodily injury caused by an accident on the premise owned or rented by the insured or when caused by the insured’s operations. Payment is made without regard to the insured’s liability.
Fire Damage Limit
Fire damage coverage provides coverage for fire damage to rented premises caused by the insured’s negligence.
Liquor liability insurance provides coverage for bodily injury or property damage for which an insured may be held liable by causing or contributing to the intoxication of any person, furnishing alcoholic beverages to a person under the legal drinking age or under the influence of alcohol and violating any statute, ordinance, or regulation relating to the sale, gift, distribution, or use of alcoholic beverages. This coverage only applies if the insured is involved in the manufacture, sale, or distribution of alcoholic beverages, furnishes alcoholic beverages for a charge, or provides alcoholic drinks for no charge if such activity requires a license.