Business and Commercial Insurance

A Business Owner’s Policy or “BOP” is insurance coverage designed specifically for small or medium-sized businesses. Depending upon the insurance company, the size of business that qualifies for a business owner’s policy may be based on revenues or number of employees or both. A BOP combines several types of insurance coverage in a packaged format, and can be customized to suit a particular business. Generally, this type of policy includes both property and liability coverages.

BOP Policies may also provide coverage including the following:

Property Claims

Breakdown of Equipment


Professional Liability

Loss of Income Business Interruption

Copyright Infringement

Premises Liability

Products and Completed Operations

Covers third party liability claims for injuries to other people.

Covers professionals against loss due to negligent professional duty, wrongful acts, and advice and services that lead to another person’s loss or injury.

Covers against faulty products and damage, illness, injury or death that may occur from using a faulty product

Covers loss and damage to your commercial business property due to fires, storms and other causes.

Covers commercial vehicles and drivers for collision, liability, property damage, personal injury and ''comprehensive'' (also known as ''other than collision'').

Covers your employees if they become injured while working on the job.

Covers your business expenses such as rent and employee wages if you can’t operate your business.

Covers loss of income that may result from the head of the business or other key personnel becoming incapacitated or passing away (also known as key man insurance).

Provides protection for risks due to internet use and online communications.

Covers loss of important data and financial records.

Insurance that covers various specific business risks, such as those of landlords, farmers, and commercial operations that put on one-day events, such as seminars or concerts.

Business Insurance may be required by law, but only under certain conditions.


The following Business Insurance is required by law if it is applicable to your situation:

Unemployment Insurance

Applies to a business that has employees and may be obligated to pay unemployment insurance taxes under prescribed conditions; if these conditions are applicable to your business, then you must register your business with the state work force’s agency.

Workers Compensation Insurance:

If your business has employees, you are most likely legally obligated to carry workers’ compensation insurance, either on a self-insured basis or through a commercial insurance carrier or a state worker’s compensation program. Workers compensation laws vary by state.

Disability Insurance

Several states require that a business have partial wage replacement insurance coverage for employees eligible for non-work related injury or illness. These states include California, Hawaii, New Jersey, New York, Puerto Rico and Rhode Island.

Professional Liability Insurance

Some states require specified professionals to carry insurance against professional liability.

Commercial Package

Commercial Package Policies may also provide coverage including the following:

A Commercial Package combines general liability with property coverage. With a Commercial Package, we can add building, business personal property and equipment all to one policy. Commercial Package can include coverage for business income; if you are shut down because of a covered loss and helps you retain clients by getting you up and running again in a temporary location.

Commercial Property Insurance

Commercial Umbrella

Inland Marine Coverage

Professional Liability

Commercial General Liability Insurance

Crime Coverage

Equipment Breakdown

Employment-Related Practices Liability

Commercial property Insurance

Provides coverage against damage to your business property, such as a fire or severe storm. Coverages can include your buildings, equipment, inventory, and even customers’ personal property in case it’s lost or damaged due to a number of causes.

Commercial General Liability Insurance

Provides insurance protection for a company’s assets, financial obligations, legal defense, and any settlements or judgments awarded to an injured party. It may also include claims for copyright infringement, false or misleading advertising, or libel and slander.


Property Damage coverage for the physical damage to property of others or the loss of use of that property. If a patron is injured in some way in the course of doing business with your company, your General Liability insurance can provide coverage.


Other coverage includes: Reasonable Use of Force; Borrowed Equipment; Liquor Liability; Non-Owned Vehicles (such as aircraft and watercraft); Fire, Lightning or Explosion Damage; Water Damage Liability Protection; Legal Defense Costs; Medical Payments; Personal Injury; Advertising Injury; and Specialized Liability Protection for Specific Business types.

Commercial Umbrella

Business insurance covers lawsuits as long as you have the appropriate Business Liability insurance for your situation and enough liability coverage. To ensure that enough liability coverage is in place for extreme circumstances like a lawsuit that exceeds $1 million in damages, many businesses buy a Commercial Umbrella liability policy.

Certain liability exclusions also apply, such as if an injury or damage was expected, or was caused intentionally. Some policies also have something called “workmanship” exclusion, and some exclude coverage of punitive damages. Liability insurance is available in many different forms, including: General Liability, Professional Liability, “Errors and Omissions” and Malpractice.

Crime Coverage

Is an insurance policy that is designed to meet the needs of organizations other than financial institutions (such as banks). A commercial Crime policy typically provides several different types of Crime coverage, such as: employee dishonesty coverage; forgery or alteration coverage; computer fraud coverage; funds transfer fraud coverage; kidnap, ransom, or extortion coverage; money and securities coverage; and money orders and counterfeit money coverage.

Inland Marine Coverage

This coverage goes beyond your standard property insurance policies; Inland Marine insurance covers your moveable property, wherever it’s located. An Inland Marine policy can cover a variety of items against damage or loss, such as:

Various hand and power tools

Truck cargo

Construction equipment

Moveable property including bridges, television or radio towers, etc.

Inland Marine policies also offer legal liability exposures of bailees – organizations or people who have temporary custody of someone else’s personal property (i.e., jewelers, parking valets, seamstresses, dry cleaners, etc.). We can help you identify if you need Inland Marine insurance based on daily operations of your business.

Equipment Breakdown insurance

Business Equipment Insurance, also called Equipment Breakdown Insurance, is a necessity in this technological age. Whether it’s electrical, electronic, heating, or cooling, you don’t want to think about what would happen if it broke down. Equipment Breakdown Insurance, sometimes called boiler and machinery insurance, typically covers the following equipment-related issues:

Pays to fix or replace failed equipment

Reimburses for labor and time costs to fix or replace failed equipment

Replaces lost business income due to equipment failure that leads to business stoppage

Covers other costs to minimize losses or to get equipment working and productive faster

Reimburses for loss of materials or related goods, such as spoiled food, due to equipment shut down

The specific policy will depend on the insurance company that provides your coverage and how that company structures your Equipment Breakdown Insurance policy.

Professional Liability

Also known as Errors & Omissions or Malpractice insurance, Professional Liability insurance goes beyond a General Liability policy to cover mistakes that might occur as you conduct business.

A form of insurance that protects the insured against liability for committing an alleged error or omission in their performance of their professional duties.

A Professional Liability policy covering the policyholder for negligent acts and omissions that may harm his or her clients.

Employment-related practices liability

Employment Practices Liability Insurance, commonly referred to as EPLI insurance, is specifically designed to protect employers from lawsuits brought on by employees. It provides coverage for many situations that General Liability insurance does not.


Protects your business from the most common wrongful employment claims, including:


Wrongful termination


Libel, slander and humiliation

Wrongful discipline

False imprisonment

Violation of Uniformed Services Employment and Reemployment Act.

Invasion of privacy

Wrongful failure to promote or employ

Wrongful deprivation of a career opportunity

Wrongful demotion or negligent evaluation

Violation of Family Medical Leave Act

Improper disclosure of confidential employee information, resulting in identity theft.

Workers’ Compensation

A Workers’ Compensation insurance policy will cover the majority of injuries that arise from work-related duties, ranging from simple slip-and-fall accidents to repetitive motion injuries and even a disease contracted at work. Each state has its own rules, regulations, coverage requirements but it usually depends on the number of employees, type of business and a few other things.


Employer’s Liability Insurance protects your business from costs resulting from employee claims not covered by Workers Compensation benefits. It covers the gap between your company’s bottom line and lawsuits stemming from employee activities. Depending on where you do business, you may be able to purchase Employers Liability coverage as part of your Workers Compensation benefits.  In some states, however, you may have to purchase a separate policy, especially if you are conducting business overseas.

If you have Workers Compensation coverage, you may already have Employer’s Liability Coverage. The two coverages work together to protect you and your employees.

These definitions provide a brief description of the terms and phrases used within the insurance industry. These definitions are not applicable in all states or for all insurance and financial products. This is not an insurance contract. Other terms, conditions and exclusions apply. Please read your official policy for full details about coverages. These definitions do not alter or modify the terms of any insurance contract. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control. Additionally, this informational resource is not intended to fully set out your rights and obligations or the rights and obligations of the insurance company, agent or agency. If you have questions about your insurance, you should contact your insurance agent, the insurance company, or the language of the insurance policy.