A: Business insurance coverage for a business can include the following coverages, and possibly more:

• General liability insurance: Covers third party liability claims for injuries to other people
• Professional liability and malpractice insurance: Covers professionals against loss due to negligent professional duty, wrongful acts, and advice and services that lead to another person’s loss or injury
• Product liability insurance: Covers against faulty products and damage, illness, injury or death that may occur from using a faulty product
• Property insurance: Covers loss and damage to your business property due to fires, storms and other causes
• Commercial vehicle insurance: Covers commercial vehicles and drivers for collision, liability, property damage, personal injury and “comprehensive.”
• Workers compensation: Covers your employees if they become injured while working on the job
• Loss of income: Covers your business expenses such as rent and employee wages if you have a covered loss
• Key person insurance: 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).
• Cyber-crime insurance: Provides protection for risks due to Internet use and online communications
• Records retention policies: Covers loss of important data and financial records
• Specialty coverage: Insurance that covers various specific business risks, such as those of landlords, farmers, and commercial operations that put on one-day events; e.g. seminars or concerts.

• Errors and omissions coverage (“E and O”) covers a business for a service rendered which did not have the expected or promised results, or which results in a loss or personal injury suffered by the person receiving those services.
• Business owner’s policy (BOP): 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 coverage.

A: Business insurance is 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.
• Professional liability insurance: Some states require specified professionals to carry insurance against professional liability.

A: Business Interruption/Extra Expense coverage provides coverage for income loss and the expense of establishing a temporary site during repairs due to damages related to a fire or compensable loss.

A: An audit may require you to show proof that sub-contractors had their own insurance coverage. The sub-contractors’ certificates of insurance will prevent you from being charged for their exposure.  Having a certificate of insurance can prevent a claim from being paid under your policy for a subcontractor’s negligence.

A: At the end of the policy term, the insurance company will review the policy.  Depending on recent exposures, this can result in a return or additional premium for the policyholder from the amount estimated at the beginning of the policy term.  Examples of estimated auditable items include sales and payroll. Audits can be performed onsite by an auditor or via mail or telephone.  A premium is charged for audit estimations.

A: Replacement Cost is the current cost to replace property. Actual Cash Value is the replacement cost less depreciation.

A: Fire legal coverage provides coverage to for you if you rent a business space and are held responsible for fire damages to that rented space.   It does not apply to all business risks.