Commercial Lines
Commercial insurance covers the property and liability exposures of businesses. This chapter introduces commercial general liability, package policies, business income, and specialty property lines. The coverage concepts are national, though rates and forms may be filed by state.
Commercial Property and General Liability
Commercial property insurance covers a business's buildings, equipment, and inventory against covered perils. Commercial General Liability (CGL) covers the business's legal liability to third parties for bodily injury and property damage arising from its premises, operations, products, and completed work, plus personal and advertising injury. CGL does not cover the company's own property or injuries to its own employees; those are addressed by commercial property and workers compensation, respectively.
Package Policies and Business Income
A Businessowners Policy (BOP) packages commercial property and general liability, and often business income, for eligible small and mid-sized businesses at a convenient price. A Commercial Package Policy (CPP) is a larger, more customizable package for bigger risks. Business income (business interruption) coverage pays lost net income and continuing expenses such as payroll and rent during the period of restoration after a covered physical loss suspends operations, addressing the indirect financial impact of a loss.
Specialty Property Lines
Inland marine coverage insures movable or transportable property, property in transit over land, and hard-to-value items like fine art and contractors' equipment. Ocean marine covers vessels and cargo on the water. Crime coverage protects against employee dishonesty, theft, and forgery. Commercial auto covers vehicles used in the business. Matching the right specialty line to a business's exposures ensures gaps are covered that a standard property or liability policy would exclude.