Corporate Property Insurance

Casualty Insurance Coverage

Property insurance coverage is addressed from two sides of the same idea. "Named Perils" names each peril to be insured against; such as fire, explosion, aircraft damage, windstorm, etc. Other perils may be added along the way. "All Risk" starts from the other side, assuming all perils are covered except those named in the "Exclusions" of the policy. Obviously, the exclusions are an important part of the All Risk policy. Perils often excluded are: flood, and earthquake. Since the All Risk policy affords better protection, it is more expensive to purchase than the Named Perils policy. Remember, your agent is there to help you to understand your coverages. Insurance of property is based on its value. There may be "co-insurance" penalties for failing to insure to value. These penalties may be applied to a loss settlement. Determination of value is important for calculating the premium and settling for a loss. Some terms often used are: "actual cash value" meaning fair value market, "replacement cost", "selling price" for unsold inventory, and "business interruption".

Claims Large deductibles, although they afford a reduction in premium, can have a critical affect on your cash flow if you are operating with or have access to very little capital. You cannot rely on insurance to always or completely cover your losses. A frequency of claims will have a definite affect on the insurer's willingness to continue to insure your business. Although business-owners generally purchase replacement cost coverage, insurers often limit their initial settlement for the loss to actual cash value until such time as the owner has replaced the items lost.

Liability insurance - In general, liability insurance protects you from claims presented against your business for unintentional negligent acts. Additionally, this coverage provides a defense if a lawsuit is filed against your business. Example:

1) someone slips and falls on your business premises;
2) your covered truck is involved in an auto accident.

In order to protect the assets of your business, it is very important to purchase both adequate coverage and limits of liability insurance when you purchase your business insurance. You should discuss liability insurance in detail with your insurance agent.

Coverages Major types of business liability insurance you should be familiar with are: premises/operations, lessor's risk, contractual, products/completed operations, personal injury, non-owned auto, and professional liability.