Commercial Lines

General Liability Policy

Provides coverage for third-party bodily, property, and personal & advertising injury

Per Occurrence vs. Aggregate

Per is the amount paid out per incident while is the total amount a policy will pay out per term

Products/Completed Operations

covers liability claims resulting from a business's product including food (i.e. food poisoning, toy baby chokes on)

covers liability claims resulting from a completed service (i.e wet floor, installation that falls and breaks something)

away from the insured’s location

Damage to Rented Premises

-a coverage that applies to damage the insured is liable for to a premises they are renting
-applies to building only, not contents!
-ONLY APPLIES TO FIRE LOSSES

Personal and Advertising Injury

are acts that violate the rights of a person or business excluding physical harm. Includes libel (written), slander (spoken), copyright or IP infringement, invasion of privacy, false arrest, wrongful eviction
are acts that harm in the context of advertising

Business Owners Policy (BOP)

-combines general liability, property, and business income coverage

Business Personal Property

-covers contents inside or within 1000ft of the property address listed on the policy
-for property owner OR tenant
-paid out in actual cash value basis unless endorsed to include replacement cost (preferred)

Hired Auto

Symbol 8 - coverage which includes any autos rented, leased, or borrowed for business purposes

Non-owned Auto

Symbol 9 - covers employee vehicles used for business purposes

Employment Practices Liability

-covers employment-related claims like sexual misconduct, discrimination, and wrongful termination
-sometimes included in general liability

Business Income/Extra Expense

-helps cover the loss of business income if an insured can't operate due to a covered loss
-no deductible for this coverage, however some insurers have a waiting period up to 72 hours after the loss occurs
-policy does NOT cover power lines, losses from non-covered perils, and non-documented income.
-covered perils are fire, wind/hail, lightning, tornado, theft, vandalism

Bodily Injury/Property Damage Limits

-Can be split or combined
-Split is most common, reads like 250/500/100 (these numbers are recommended on the commercial side)

$250k = third party bodily injury per person
$500k = third part bodily injury per accident
$100k = third party property damage per accident

-Combined single limit looks like 500 CSL. Means the total payout of a claim will be $500k which can go towards third person bodily injury or property damage. More $$$

Uninsured/Underinsured Motorist

-the insured, their resident relatives, and passengers in the vehicle can use this coverage if they are in a not at fault accident and the other drive has insufficient or no coverage
-can cover medical bills, lost wages, and pain/suffering resulting from bodily injury.
-also applies to hit and runs
-uninsured motorist property damage (UMPD) is separate and covers property damage in the same situation

PIP/Medical Expense

Personal Injury Protection
-A FIRST PARTY coverage for the insureds and their passengers, regardless of fault
-Includes medical expenses
-Loss of wages
-Household services (childcare, house cleaning, yard work)
-Disability or rehab costs
-Death benefit

Medical Payments if for non-PIP states. Covers first party medical bills, but NOT the rest (lost wages, etc.). Typical amount is $5000

Rental Reimbursement

-endorsement that provides a specified amount to the insured if their vehicle is being repaired due to a covered claim.
-You can do $900 ($30 for 30 days), $1200 ($40 for 30 days), or $1500 ($50 for 30 days)

Towing & Labor

-provides towing & labor to the insured, but does not cover parts or labor for the repair once it's at the repair shop.
-The insurance carrier will typically only tow to the nearest repair shop or within a certain mileage. ​
-relatively inexpensive
-can cover towing, jumpstarts, fuel delivery, vehicle lockout, and flat tire

GAP Coverage

-necessary for clients who have a loan or lease on their vehicle. It covers the difference between what they owe on the vehicle and what the insurance company pays out.
-So if the car is totaled, it will pay off the rest of the loan that the initial payout didn't cover
-Some people get it through their auto loan
-ex. you bought a brand-new car for $25,000. You still owe $20,000 on your auto loan when the car is totaled in a covered collision. Your collision coverage would pay your lender up to the totaled car's depreciated value — say it's worth $19,000. If you don't have gap insurance, you would have to pay $1,000 out of your own pocket to settle your auto loan on the totaled car. If you have gap insurance, your insurer would help pay the $1,000.

Worker's Comp Policy

includes coverage for the following for employee injury or illness due to the job:
-Medical expenses - includes examinations, treatments, and rehabilitation.
-Lost wages - gives employees time to recover from their injury before returning to work.
-Survivor benefits - support families by helping to cover funeral costs and income replacement.
-Retraining - helps employees who need to learn skills to enter a new field.
-Permanent injury - provides benefits to employees who can no longer work due to injury.
-Employer's liability - protects businesses from financial losses if an employee files a lawsuit against them.

W2 vs. 1099 employees

is full or part-time employees, is subcontractors

Owner Only (what carriers will write these?)

-If a business does not have any employees but still needs Worker's Comp to fulfill a contract requirement, this is when we will write an " " Worker's Comp policy.
-This policy covers the owners if they are injured on the job, but no employees or subcontractors that they may happen to hire throughout the policy term.
-If a business adds employees during a policy term, it is imperative that they let the insurance carrier know so the payroll can be adjusted.
-Our only carriers who will write this type of Worker's Comp are Hartford & BiBerk.

Ghost Policy (what carriers will write these?)

-an owner only worker's comp policy that excludes owners
-provides no coverage and insureds can purchase it to fulfill contract requirements
-It is just a very expensive piece of paper
-Acuity will write one when bundled with a GL or BOP. Guard will write a monoline ghost policy

Monopolistic States

States where employers can only buy a worker's comp policy from a state fund. States are North Dakota, Ohio, Washington, Wyoming.

At Mylo: If an insured has offices in a monopolistic state and a non-monopolistic state, we can still write worker's comp for the latter

Cyber Liability

-Provides businesses with options to help protect them from data breaches and other cybersecurity issues.
-Necessary for businesses that store sensitive customer information or protected healthcare information.
○ Ex. Credit card, email, address, birthday
-Can cover:
□ Loss of income due to a cyber event
□ Costs associated with notifying customers affected by a breach
□ Costs for recovering compromised data
□ Costs for repairing damaged computer systems
-Can be written as a standalone policy (Chubb and Cowbell) or data breach endorsement for smaller businesses with lower exposure on a BOP (Hartford, Chubb, Acuity, others)
-To quote you need to know what kind of info they store, how many records, safety measures

Umbrella Policy

-Commercial umbrella insurance provides an extra layer of liability protection by covering costs that go beyond your other liability coverage limits. Umbrella insurance can provide coverage for injuries, property damage, certain lawsuits, and personal liability situations. But will not cover professional liability.

Liquor Liability

■Liquor Liability can be added as an endorsement on a General Liability policy, or as a standalone policy.
■Helps protect businesses that sell, serve or distribute alcohol. Can help cover claims of bodily injury or property damage that an intoxicated customer causes. Drunk driving or assault/battery claims are included.
■Limit ranges from $100k to $1mil
■This can cover:
□Legal costs
□Settlements or judgements
□Repair costs to fix property damage
□Medical bills to treat an injury
■Who needs Liquor Liability?
□Restaurants, caterers, liquor stores, grocery stores, gas stations

Garage Keepers Liability

-protects businesses that have customer vehicles in their care, custody, or control
-covers property damage while being stored or test driven
-ex. auto repair shops, auto detailing, car washes, towing company
-excluded from general liability
-When you quote garage keepers one question to ask is how many vehicles they would ever have at one time to determine limit

Animal Bailee

-protects businesses that have customers' pets in their care, custody, or control against injury, loss, or death
-can cover vet bills, advertising expenses, reward costs, search/recovery

Professional Liability Policy

-Protects businesses when an owner or employee makes a mistake in the professional services they are offering to clients.
-AKA Errors and Omissions (E&O)
-Can protect against claims of negligence, misrepresentation, inaccurate advice, personal injury, copyright infringement, defense costs
-Professionals that need it: Doctors, engineers, personal trainers, financial advisors, etc.

Occurrence Policy

-Provides coverage for incidents that happen during the policy period regardless of when you file a claim. Most insurance policies are written on an occurrence form, besides PL

Claims Made Policy

-Helps cover claims filed during the policy period.
-Professional Liability policies are written on a policy form.
-Claims are only covered if they are filed during the policy period, or extended reporting period, and the loss occurred on or after the retroactive date.

Retroactive Date

-A specified date on a policy (in the past) where a claim can be filed during that time.
-Ex. Coverage starts in January 2021, but has a retroactive date of November 2019. Your client sues you in February 2021 for an event that occurred in December 2019. Covered because it happened after the retroactive date and the claim was reported during the policy period.

Inland Marine

-Provides property coverage for business property that is transportable or is not permanently located at the location(s) listed on the policy

-only covers transport on land

-can be written as a standalone policy or endorsed to a BOP in certain situations

Umbrella Policy

-provides extra protections by covering the costs that exceed the limits of other liability policies like GL and commercial auto

-does NOT provide excess Professional Liability