Many insurance buzzwords are vague, ambiguous, and often poorly defined. Arnold Insurance believes it is crucial to go the extra mile to ensure that our customers understand the options available to them so they can make informed insurance purchasing choices. Below, you will find many common commercial insurance terms and their meanings.
Commercial Property Insurance
Refers to property and other assets owned by the business. It provides protection against variously named perils.
Property
Property refers to permanent physical structures such as buildings, signs, parking lots, etc.
Assets
These are the business possessions that allow your business to operate and may include inventory, products, office equipment, furniture, machinery, accounting records and documentation, tools, heavy equipment, and more.
Perils
Perils refer to risks that are covered by your policy. They should be clearly identified and defined in your policy and often include the following:
- Vandalism
- Wind
- Lightning
- Hail
- Fire
- Theft
Perils that aren’t clearly identified within the policy are often excluded from coverage and may include things like flood and earthquake damage.
General Liability Insurance
General liability insurance is one of the most important insurance products businesses today can purchase in that it provides protection against financial losses related to injuries and property damage your business is responsible for.
Liability
General business liability often covers property damage, bodily injury, and advertising mistakes.
Property Damage
Refers to property damage caused by your business, equipment, or employees to the property of another business or individual.
Business Vehicle Insurance
Provides insurance protection for various vehicles used by the business. There are different types of business vehicle insurance available. Working with the team at Arnold Insurance can help you choose the right products for your business needs.
Auto Liability
Provides protection for your business if an employee damages another vehicle, or property, or causes bodily harm to another.
Workers’ Compensation Insurance
Provides essential protection for medical expenses, lost wages, and funeral expenses related to employee injuries and illnesses incurred as a result of their employment.
Claims
When an employee is injured on the job they must file a claim, which includes appropriate forms along with supporting documentation from the company, witnesses, and medical professionals before they can receive compensation.
Business Owner’s Policy (BOP)
This refers to one policy that provides different types of insurance protection into a single policy. This results in lower rates for the provided protection for business owners while ensuring basic coverage against specific perils. It is not meant to be an all-inclusive policy but does offer many of the insurance products most businesses commonly need.
Business Income Coverage
This insurance protection comes into play when businesses are forced to shut down for prolonged periods of time as the result of a covered peril. Business income coverage allows businesses to recover a portion of their lost wages in order to maintain certain business expenses while the business remains closed for repairs.
Covered Loss
Covered losses include the losses against which your business is insured. For instance, businesses that have to remain closed in the aftermath of wildfire are covered under their insurance policy’s fire protection.
Wages
Employee wages are often an included protection in your business income coverage.
Payroll
Payroll is one of the expenses businesses can continue to make while remaining closed with this protection.
Commercial Auto
This protects assets owned by the business such as cars, trucks, delivery vans, and other vehicles owned by your company. Standard coverages include losses against the following:
- Vandalism
- Flooding
- Fires
- Theft
This is in addition to other losses that are unavoidable and unpreventable.
Collision Coverage
This provides coverage against damage and losses related to accidents in which the driver hits another object or vehicle.
Comprehensive Loss Coverage
Provides protection against damage and losses in accidents that were not caused by collisions.
Bodily Injury Coverage
Provides financial protection and coverage to pay for medical bills related to bodily injuries occurring in covered vehicles.
Cyber Insurance
Provides protection to your business should it become the victim of a data breach. Cyber insurance typically covers financial losses directly related to the breach, business liability resulting from the breach, and the recovery process for data and other information lost as a result. Because the field is growing and evolving rapidly, make sure to work with Arnold Insurance to make sure your business has sufficient protection.
Errors and Omissions Insurance
A type of business liability protection that protects your organization against claims of negligence, incomplete work, incompetence, and more. It is a common need for any business that provides a service to customers, including doctors, insurance agents, attorneys, accountants, etc.
Professional Liability Insurance
It is a type of professional liability insurance that protects businesses from mistakes, accidents, and acts of fraud or misdeeds committed by employees.
Negligence
Refers to the failure of a business to provide an appropriate or promised level of service or care that is expected of them.
Misrepresentation
Refers to false claims about abilities, services provided, guarantees, etc. that your business agreed to deliver.
Group Health Insurance
Health insurance benefits businesses provided to employees within the organization.
Umbrella Insurance
Provides additional liability protection beyond your existing liability insurance coverage's plan limits.
Specialized Liability
Some businesses require specialized liability protection in order to mitigate risks further than your existing liability protection affords. This may include product liability insurance, bonds, and other types of coverage.
Breach of Contract
This is a type of protection that is generally excluded by most insurance policies as it is considered an avoidable event – something the business owner can control.
When it comes to commercial insurance, don’t get confused. Partner with Arnold Insurance for comprehensive custom policies designed to meet your business insurance and risk management needs. Contact us today to learn how we can help you get the right coverage to deliver peace of mind while preventing financial disaster when covered events strike