General

1. Do you offer risk management services for businesses?
2. What exactly is Risk Management?
3. What are the main advantages of buying a BOP package instead of separate coverages?
4. We're growing concerned about environment laws and standards and our possible vulnerability. Is there a way to protect our company?
5. I heard recently that life insurance is a good way to fund a buy and sell agreement. Is that true? How does it work?

Property

1. What does business interruption insurance cover?
2. If our business were closed because of a fire or other cause, what types of loss of income can we recover from our business interruption policy?
3. How does contingent business income insurance work?
4. If we our building were destroyed by fire, I know we would have to re-build under a whole new bunch of local building codes. Would my insurance cover the added expenses involved?
5. Are property damages caused by an earthquake covered by my business insurance policy?
6. Does our business property insurance cover damages caused by flooding?
7. Does our BOP cover employee dishonesty and fraud?
8. My business stores some perishable items. Is there a way to insure these items against loss?
9. Does a commercial auto policy cover theft?
10. Is there special coverage for computers, data and storage systems?
11. What is a "Floater?"
12. What is meant by "scheduled business property?"

Liability

1. What does EPLI stand for?
2. How does a Commercial Umbrella Policy benefit a business?
3. When does a business need proof of Insurance Certificates?
4. We are about to enter a contract with a sub-contractor for a major software project that we have just received. How can we protect ourselves from potential liability?
5. What is Hired and Non-Owned Auto liability coverage?
6. What does "errors and omissions" insurance cover?
7. I am confused about the difference between claims-made polices and occurrence policies!
8. If we use leased workers, does our Workers' Comp policy apply for them?

General

Q. What exactly is Risk Management?
A. Many elements entail Risk Management. The process essentially involves knowing your business risk exposures and providing proper operational procedures and insurance to maximize workplace safety. A proper Risk Management strategy minimizes accidents and on-site calamities, and avoids liabilities caused by poor practices. Loss control and loss prevention are also critical success factors. Back to list.

Q. What are the main advantages of buying a BOP package instead of separate coverages?
A. The Business Owner Policy (BOP) bundles property and liability coverages together in one convenient package. It is easier to manage than several individual policies are, and it offers cost savings as well. Back to list.

Q. We're growing concerned about environment laws and standards and our possible vulnerability. Is there a way to protect our company?
A. Yes. Look into Environmental Impairment Liability insurance. Environmental Impairment Liability insurance protects your business from environmental damage caused by contaminants released into or onto land, the atmosphere, or any watercourse or body of water. It covers a variety of losses and expenses that result from these damages. Some environmental problems can be caused by business actions previously unknown to you. You can buy a separate policy or, somehow, add an endorsement to your commercial package. Back to list.

Q. I heard recently that life insurance is a good way to fund a buy and sell agreement. Is that true? How does it work?
A. It is indeed! In a buy and sell agreement, business partners agree to buy out each other's interest if one of them dies. Each partner buys life insurance designed to fund the buyout of the other's share of the business. Both need to be insurable, of course. Cash value insurance offers some special advantages if you are considering a buy and sell. Back to list.

Property

Q. If our business were closed because of a fire or other cause, what types of loss of income can we recover from our business interruption policy?
A. It is designed to cover the income that your business would have been expected to generate had the disaster not occurred. It also can provide funds to cover critical expenses ("Extra Expense Coverage") to keep your business operating (at an temporary location, for example). Back to list.

Q. How does contingent business income insurance work?
A. It protects a business against losses in its revenue stream that occur if a manufacturer, supplier, distributor, or nearby anchor retailer that the business depends on is shut down by fire, storm or other disaster. Back to list.

Q. If our building were destroyed by fire, I know we'd have to rebuild under an entirely new set of local building codes. Would my insurance cover the added expenses involved?
A. Yes, if your business has Ordinance and Law Coverage added to your standard property insurance policy. It's an option that covers the real estate if it is damaged by a covered peril, such as fire or tornado, which requires you to demolish your building or completely renovate it. Back to list.

Q. Are property damages caused by an earthquake covered by my business insurance policy?
A. Earthquake damage normally is excluded from the standard business insurance package. You may want to buy special coverage. Back to list.

Q. Does our business property insurance cover damages caused by flooding?
A. No. Property insurance generally does not cover damages caused by a flood. To protect your business and belongings from flood damage you can buy a policy backed by the National Flood Insurance Program, a division of FEMA. Building and contents are covered separately. If you have contents, be sure to request coverage. Also, there is a customary 30-day waiting period before coverage goes into effect. Back to list.

Q. Does our BOP cover employee dishonesty and fraud?
A. Some enhanced BOPs do include some measure of protection, but standard policies generally do not cover crimes committed by employees. Usually coverage can be added by endorsement (it also may be provided separately as a "dishonesty bond"). In addition to taking prudent steps to minimize fraud, stealing of cash, etc., it is crucial to protect your business with this type of crime insurance. Back to list.

Q. My business stores some perishable items. Is there a way to insure these items against loss?
A. Yes. Spoilage coverage can be added to most policies providing property protection. Back to list.

Q. Does a commercial auto policy cover theft?
A. Yes, provided you have comprehensive coverage. This coverage is optional. It will pay for the vehicle and stolen components such as airbags or xenon headlights which are common black market targets. Back to list.

Q. Is there special coverage for computers, data and storage systems?
A. Yes. It's called Electronic Data Processing (EDP) insurance. Standard commercial package policies do not cover all the risk exposures that relate to computers and other electronic equipment. Back to list.

Q. What is a "Floater?"?
A. It provides broader insurance coverage than standard business policies, often involving property that moves (floats) from place to place, such as goods in transit or laptop computers. Back to list.

Q. What is meant by "scheduled business property?"?
A. A separate listing of specific items of property covered by endorsement to an insurance policy, often called a "Floater," stating the exact dollar value of each. Back to list.

Liability

Q. How does a Commercial Umbrella Policy benefit a business?
A. It provides additional coverage when the liability limits in your basic business policies are exceeded or in certain circumstances where no coverage exists. In short, valuable extended benefits for a major liability situation. Back to list.

Q. When does a business need to obtain Insurance Certificates?
A. If you hire contractors or other vendors, you will want to make sure that they have proper Workers' Compensation and General Liability insurance coverage. If they do not have proper coverage and a liability arises as the result of their work, you may be held liable. Make sure you keep accurate records of Insurance Certificates noting when the insurance expires. Regarding your own Workers' Compensation insurance, failure to maintain certificates for sub-contractors could result in an additional premium charged upon audit.Back to list.

Q. We are about to enter a contract with a sub-contractor for a major software project that we have just received. How can we protect ourselves from potential liability?
A. A common way is through a "hold harmless" agreement, in which one party assumes liability by indemnifying the first party. However, it may be best if you are also covered as an additional insured by an insurance policy owned by the other party. Contractual arrangements such as these can be complex and we recommend you consult with one of our professionals as well as with your attorney.Back to list.

Q. What is Hired and Non-Owned Auto liability coverage?
A. It protects you for risks involving the use of vehicles that are rented or hired by your business. It also covers the use of personal vehicles for legitimate business purposes by your employees (such as driving to a sales meeting). Without it, you would be unprotected for your responsibility for the legal liability of an employee who is involved in an accident. Back to list.

Q. What does "errors and omissions" insurance cover?
A. Commonly referred to as Professional Liability insurance, it covers claims of breaches of duty, errors, omissions, misleading statements, and other like claims arising from services rendered. Back to list.

Q. I am confused about the difference between claims-made polices and occurrence policies!
A. Here is a simplified explanation. Claims-made policies provide coverage for incidents that have occurred, and for which claims have been made, between the inception of the policy and its expiration date. Occurrence policies provide coverage for incidents that occur during the policy period, regardless of when they are reported. Back to list.

Q. If we use leased workers, does our Workers' Compensation policy apply for them?
A. You will need to add an endorsement to your Workers' Compensation policy. Back to list.