BUSINESS INSURANCE FAQs

Named Insureds are those listed by name in the relevant block of the policy’s declaration page. Although the named insured is commonly one person, partnership, corporation or other entity with insurable interests, multiple named insureds may be included. First Named Insured is the first “named insured” listed on the policy declarations (front page of the policy). This insured acts as the legal agent for all named insureds in initiating cancellation, requesting policy changes or accepting any return premiums. The first named insured may also be responsible for payment of the premiums. Additional Insured is an entity to which some of a policy’s coverage is extended. An additional insured must be added to the policy prior to a claim being paid. There must be a tied to relationship between the additional insured and named insured. Being an additional insured on another’s policy does not eliminate the need for someone to have his/her own Commercial General Liability policy.

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.

Products/Completed Operations refers to the liability coverage for damages caused by your operation or products after the point at which you no longer have control of them.

General Liability provides coverage if you are liable for damages to other individuals arising from your premises, general operations (ongoing and after completion) and products manufactured or sold.

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.

At the end of the policy term, the insurance company will review the policy and either charge or credit the policyholder based upon an audit of estimated figures. 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.

This damage will be covered only if that type of coverage is purchased.

Insurance carriers require that an insured party insure at least 80% of the property’s value in order to collect a partial loss in full. This is the way the insurance company encourages all insureds to adequately insure their property in relation to other insureds.

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

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.

There are several things you should consider when purchasing automobile insurance that your independent agent will help you with. Here are a few:

• Purchase the amount of liability coverage which makes sense for you.

• Select the optional coverages you want.4

• Decide which company to purchase insurance from.

• Don’t base your decision solely on price. Other factors like service and claim response are extremely important in selecting the right insurance.

Broad Form Collision pays for the damages, less deductible amount, for collision damage to the insured vehicle regardless of fault. The deductible will be waived if the driver of your car is not substantially at fault in the accident.

Collision is the loss you incur when your automobile collides with another vehicle or object like a telephone pole.

Physical damage coverage for the insured’s own vehicle for damage resulting from perils such as fire, theft, hail, or contact with a bird or animal. Comprehensive coverage excludes collision. Also called Other Than Collision Coverage.

There are several things you can do to lower the cost of your automobile insurance.

One way is to look for competitive pricing. An independent agent works with many companies and can provide you comparative rates and insure that your are getting the same coverage.

Another way to lower the cost is to change your deductible. By raising your deductible you may lower the cost of your automobile insurance. You must be able to pay the deductible amount in case of a claim. You can also look for discounts that you may be entitled to. Some examples of discounts that may be available are: multiple cars under the same policy, carrying a homeowners policy with the same insurance company, different groups or associations.