Commercial property insurance coverage provides protection from most risks to commercial property - fire, theft and some forms of weather damage. Just as you buy homeowners and car insurance for your family, you must purchase similar insurance coverage for your businesses and other organizations. Some insurance companies provide only "Personal Insurance," others provide only "Commercial Insurance," while some provide both. Regardless, because of the complexity of what is required and what is available, it is important to have a good insurance broker seeing to your risk management needs. Harman Stone Corp. takes great pride in meeting those needs - "Small Business Serving Small Business."
Commercial casualty insurance is loosely defined as an area of commercial insurance not particularly or directly concerned with commercial property insurance. It is sometimes equated to liability insurance and is mainly used to describe liability coverage of a business or organization for negligent acts or omissions. However, casualty insurance has also been used to describe property coverage for aviation, boiler and machinery, and even glass and crime insurance coverage. It sometimes includes marine insurance for shipwrecks, losses at sea, and fidelity and surety insurance. It frequently includes earthquake, political risk and terrorism coverage, and fidelity and surety bonds.
Risk Management
Insurance enables you and your business or organization to transfer the financial burden of a loss to an insurance company. In exchange for the insurance premiums you pay, the insurer agrees to pay claims for covered losses your business or organization may incur. They in turn spread this risk among all their policyholders.
Commercial insurance is a type of insurance that covers businesses and non-profit organizations against the financial effects of property and liability loses. Insurance is one of several techniques used in the overall "Risk Management" process. Risk management involves identifying, analyzing, and managing loss exposures.
A "Loss Exposure" is a condition or circumstance that presents the possibility of a loss, regardless of whether the loss has actually occurred. If the possibility of a loss exists, then the "loss exposure" exists.
There are three (3) types of loss exposure in commercial insurance:
- Property Loss Exposure;
- Liability Loss Exposures; and
- Personal Loss Exposures.
There is a risk management process for identifying and dealing with loss exposures for your business or organization. It basically consists of six (6) basic steps:
- Identify Loss Exposures;
- Analyze Loss Exposures;
- Examine Feasibility of Various Risk Management Methods Available;
- Select the Appropriate Risk Management Method;
- Implement Your New Risk Management Plan;
- Monitor Your New Risk Management Plan Monthly, Quarterly, and Annually as Appropriate.
There are a series of risk management techniques available to a business or organization. These include:
- Insurance Coverage;
- Avoidance - not owning a piece of property or refraining from engaging in a particular activity;
- Loss Control - any measure to prevent or reduce losses such as safety measures or improved storage, for example.
- Retention - is a technique where a business or organization "retains" or "self-insures" all or "partially self-insures" a particular loss exposure(s) either in an itemized form, by percentage, or through the use of larger deductibles.
- Non-Insurance Transfer - also known as "hold harmless" agreements or indemnity agreements.
Workers Compensation
Workers’ Compensation insurance provides four types of benefits for employee job-related injuries or diseases as a matter of right without regard to fault. These four types of benefits are medical, rehabilitation, disability and death. This type of insurance coverage is usually purchased by the employer from an insurance company. However, in a few states there are monopolistic state funds through which the insurance coverage may be purchased. The premium rate for Workers’ Compensation insurance is based on a percentage of the employers’ payroll and varies according to the various employees job descriptions.
Commercial General Liability (CGL)
Commercial General Liability insurance provides for separate limits of coverage for general liability, fire legal liability, products and completed operations liability, advertising and personal liability, and medical payments. An annual "aggregate limit," or maximum amount of liability is in force for the general liability, fire legal liability, advertising and personal liability, as well as medical payments. When total claims for all of these categories exceed the annual aggregate limit of liability, the policy limits are exhausted and no more claims for the respective year can be paid. There is also a annual aggregate limit of liability for products and completed operations claims.
Commercial Package Coverage
A Commercial Package Coverage policy is package of policies, all of a commercial nature, and composed of two or more of the following: Commercial Property Coverage, Commercial Crime Coverage, Business Automobile Policy, Boiler and Machinery Coverage, and/or Commercial General Liability (CGL).
Commercial Property Coverage
Commercial Property Coverage is coverage for business risks including goods in transit, fire, burglary and theft.
Commercial Casualty Coverage
Commercial Casualty Coverage refers very broadly to various types of liability coverage available to businesses. These include most commonly the Commercial General Liability (CGL), but also other types of liability including those covered in the Business Owners Package Policy, the Business Auto Policy, Condominium Association Policy, Directors & Officers Liability, as well as Professional Liability coverage.
Builders Risk Coverage
Builders Risk Insurance covers buildings in the course of construction, including additions and alterations to existing structures. The Builders Risk policy may also be used to insure buildings such as farm structures and dwelling which will not be eligible for coverage under the Business Property Policy after construction is complete. Through a special endorsement, the Builders Risk policy can also be used to cover alterations or additions to existing buildings. Both the building owner and the contractor can be insured under the Builders Risk policy.
Contractors Liability Coverage
Business Owner Package Coverage
Business Income / Interruption Coverage
Inland Marine Insurance Coverage
Ocean Marine Insurance Coverage
Aviation Insurance Coverage
Business Liability Insurance Coverage
Professional Liability Insurance Coverage
Products and Completed Operations Insurance Coverage
Commercial Umbrella Excess Liability Coverage
Management D&O Liability Coverage
Commercial Automobile Coverage
Garage Liability Insurance Coverage (Automobile Dealerships, Auto Repair Shops, Service Stations, parking Garages, and Recreational Vehicle (R.V.) Dealerships)
Dealers Physical Damage Insurance Coverage
Truckers Insurance Coverage
Boiler and Machinery Insurance Coverage
(Equipment Breakdown Coverage)
Condominium Association Package Coverage
Crime and Fidelity Insurance Coverage
Farm Insurance Coverage
Environmental Insurance Coverage
Fidelity Bonds
Surety Bonds