Commercial General Liability Insurance
Commercial General Liability (CGL) insurance provides protection for business owners from liability claims related to injury, property damage and personal and advertising injury like slander and false advertising. Premises/operations coverage handles injury or property damage on your premises or due to your business operations. Products/completed operations coverage deals with injury and property damage from your business premises caused by your products or completed work.
Excess liability insurance covers losses that go beyond the dollar limit of your CGL policy.
Umbrella liability insurance offers coverage above the limits of automobile liability and CGL policies. It also extends liability coverage for risks not covered under the CGL policies and not excluded by the umbrella liability insurance policy.
Claims Made Versus Occurrence Policies
Occurrence policies cover claims resulting from injuries or damages that happen while the policy is active regardless of when the claim’s filed.
Claims made policies handle claims arising from injuries or damages occurring during the policy term. Reported to the insurer, within that period.
Claims that come up from incidents, outside the policy timeframe or claims that are reported to the insurance provider after the policy period ends will not be covered unless you opt for coverage or make arrangements with the insurer. This unique coverage comes in two variations;
1. **Prior Acts (Nose) Coverage;** This type of coverage handles claims that stem from injuries or damages that occurred before the policy period but were reported to the insurer after it began. To provide prior acts coverage, a ” date” is set, which includes injuries or damages occurring after this date. The retroactive date is usually specified in the declarations page of your policy. Can either be the policys date or an earlier one. Notably prior acts coverage does not extend to claims that were already known when your policy commenced.
2. **Run off (Tail) Coverage;** Also known as a reporting period this coverage deals with claims made once your policy has lapsed. In a claims made policy there is typically a reporting window of 30 to 60 days post policy expiration to file any delayed claims that arose before its end date. Run off coverage kicks, in following this 30 or 60 day period. Requires a premium payment. The extended reporting duration could range from one to five years. Possibly even be unlimited.
If a claims made policy ends (due, to expiration, cancellation or nonrenewal) it’s advisable to get run off coverage from your insurer or prior acts coverage from your insurer to avoid any gaps in coverage. Typically claims made policies tend to be more cost effective in their years because the likelihood of claims rises as policy years go by.
Regarding Workers’ Compensation Insurance
Workers’ compensation offers benefits to employees who get injured or fall ill while on the job or due to their work responsibilities.
In California all employers must have insurance that covers the expenses related to injuries and illnesses. This insurance requirement is compulsory even if you only have one part time employee. Companies headquartered outside California. With employees working in the state must also carry California workers’ compensation insurance.
Workers’ compensation provides coverage for types of incidents, injuries and illnesses. An injury can result from an event like falling at work and hurting your back. Injuries can also develop from actions, such as straining your wrist from repeated motions at work.
An injury or illness covered by workers’ compensation is one that arises due, to employment related activities. If you are injured assistance will be provided regardless of who was responsible.
No workers compensation is only meant for injuries or illnesses that happen as a result of work. State Disability Insurance (SDI) on the hand covers injuries or illnesses that’re unrelated, to work. SDI is a benefit offered by the Employment Development Department.
The laws surrounding workers compensation were established to make sure that employees who get injured while working receive fixed awards. This system removes the need for battles. Makes the process smoother for the employee. It also helps mitigate risks for employers because many states have limits on how money an injured employee can claim from their employer.
Workers Compensation Insurance is designed to assist companies in covering these benefits. To safeguard employees most states mandate that employers have some form of Workers Compensation Insurance.
It’s important to note that Workers Compensation Insurance is not health insurance; it specifically caters to injuries sustained at work.
In states having Workers Compensation coverage is compulsory if you have employees. In states where its not mandatory it’s highly advisable especially if you employ a number of people or they are involved in risky activities.
Commercial Auto Insurance
Commercial auto insurance is a type of vehicle insurance policy that offers protection, for a businesss vehicles and its drivers.
Employees who are involved in accidents will be provided with coverage, for injuries regardless of who is at fault.
Commercial vehicles refer to any vehicles and trailers that a business uses to transport work related items, goods or equipment. Unlike vehicles where the owner pays for insurance the company covers the insurance premiums for work vehicles.
The common form of auto insurance is liability coverage, which is mandatory in most states. It protects a driver who’s responsible for damaging cars or causing injuries to others. Other types of auto insurance include collision coverage, uninsured motorist coverage, gap insurance and personal injury protection.
Factors that can impact insurance premiums include the type of vehicle being driven safety features like airbags and seat belts theft devices and where the vehicle is parked. Additionally a companys history of insurance claims can also influence the cost of their insurance policies.
Builders risk insurance. Also known as course of construction insurance. Is a form of property insurance that provides protection against damage to buildings during the construction phase. It safeguards an individuals or organizations financial interest in materials, fixtures or equipment used in building or renovating a structure in case these items suffer loss or damage, from covered events.
During the construction phase buildings face risks such, as fire, wind damage and unforeseen events. According to law any new construction or enhancements on a piece of land become the property of the landowner once there has been an improvement made. Builders risk insurance provides protection against types of losses.
This insurance typically covers damages caused by fire, vandalism, lightning, windstorms and similar incidents but excludes coverage for earthquakes, floods acts of war or intentional actions by the property owner. The coverage is usually active during the construction period. Ceases once the project is completed and ready for use.
While it is commonly purchased by the building owner a general contractor may also acquire it if required by the contract terms. Proof of insurance may be necessary to comply with building regulations, at city, county or state levels.