Most State laws require that every employer provide Workers Compensation insurance for their employees. This insurance provides coverage for accidents or disease arising from employment as prescribed by state law. Benefits can include lost wages, medical expenses, and permanent disfigurement/disability payments.

Major Components of Workers Compensation:

1. Workers Compensation - This section of the policy states that the policy will pay on behalf of the employer whatever benefits are due the injured employee under the workers compensation law of the state or states designated in the policy declarations. It does not specify the amount of benefits, since the laws change from time to time, so the policy merely says that it will pay whatever law currently requires. It will usually cover medical expenses, a limited amount of weekly loss of earnings, and some amount for death benefits to surviving dependents.
2. Employer's Liability - This protects the employer in the event the injuries of the employee are for some reason not compensable under the workers compensation act, or in the event that the injured worker or others can institute a claim for damages against the employer even though workers compensation benefits have also been paid.
3. Employer's Stop Gap Coverage - Insured's who are located in monopolistic states that do not include employer's liability in their workers compensation policies (some do-some don't) can instead purchase Employer's Liability Stop Gap Coverage as an endorsement to their general liability policy.

This coverage protects your business from claims arising from alleged bodily injury, personal injury or property damage liability. It includes protection for services you render or products you sell. Coverage payments can include judgments, attorney fees, court costs, or other related expenses.
Components of the General Liability Policy:
Premises and Operations
Fire Damage Coverage
Personal Injury Liability
Advertising Injury Liability
Medical Payments
Products and Completed Operations
*Special attention should be paid to Occurrence vs. Claims Made Liability




Building coverage provides protection for permanent structures listed on the policy. Completed additions, permanently-installed fixtures, machinery and equipment, outdoor fixtures, owned personal property used to service, repair or maintain the building and additions under construction or repair are all included in this definition.

BUSINESS PERSONAL PROPERTY

This coverage protects personal property owned by your firm and used in your operation. Furniture and fixtures, equipment and machinery, raw stock, and finished goods all fall within this category. Personal property of others while located in your covered building or within 100 feet of the premises can also be insured. Contents located off premises are not covered and must be insured by alternate methods.
Components of Property Insurance:
Subject of Insurance
Coinsurance
Inflation Guard
Deductible
Causes of Loss
Construction Type
Protective Safeguards
Replacement Value vs. Actual Cash Value




This policy provides protection against catastrophic liability claims. The policy acts as an excess coverage over your primary liability policies. Its limits apply in addition to that provided by the underlying coverage. A Commercial lines umbrella covers business activities and excludes personal activities.
Additional Coverage's that may be obtained on an umbrella policy:
Non-Owned Aircraft - Applies when an employee owns or uses a private plan, and causes an accident.
Non-Owned Watercraft - Applies when an employee owns or uses a watercraft, and causes an accident.
Blanket Contractual - Includes coverage for oral contracts even if the underlying liability doesn't.
Legal liability for damage caused by the insured to property in his care, custody and control, adding to and broadening other coverage's carried.
Broader wording of personal injury to include such things as sexual harassment, wrongful discharge from employment, and unintentional discrimination.
Employee Benefits Liability, for errors in the administration of benefit programs, even if not insured in the underlying coverage's.
Broad treatment of Foreign Liability.




There are a multitude of inland marine forms. If a business has an exposure that doesn't seem to fit into the "building and personal property" forms and endorsements, an inland marine policy can provide the necessary coverage. General Categories of Inland Marine Forms:

1. Property of the insured that might leave his premises, and so would not be adequately covered (if at all) by the usual property forms. The inland marine forms in this category could cover such things as a contractor's tools and equipment; a physician's medical equipment or a store's merchandise being delivered by truck to their customers.
2. Property of the insured that usually remains at a specified location, but involves some specialized exposure which has caused the insurance to be developed over the years as an inland marine coverage rather than as usual property coverage. Most common examples are the insurance of accounts receivable, valuable papers and neon signs.
3. Property of customers in the custody of the insured. The general term for inland marine insurance covering customer's property is Bailee's Insurance, though some of the forms are named for the particular business to which they apply. Typical businesses having an exposure are dry cleaners, radio and TV repair shops, appliance repair shops, cargo truckers and furniture storage warehouses.

This policy can provide a combination of liability protection and physical damage coverage for loss due to damage to vehicles owned, maintained, or used by you. Additional coverage's such as medical payments and uninsured motorist protection can be purchased to "customize" the policy to fit your business' needs
Choices include:

• only the listed autos (scheduled) on the application
• all "owned autos" - This covers both the vehicles scheduled on the policy and also any others that might be acquired during the term of the policy (and temporary substitute autos). There is no extra initial premium for this.
• any auto - This is the broadest coverage available. It covers autos scheduled, autos later acquired, autos hired (or leased or borrowed) and autos not owned by the business but being driven by an employee on company business. There is an extra premium charge for the inclusion of hired and non-owned autos.

Coverage's Available Include:
Auto Liability
Auto Medical Payments
Uninsured Motorists
Underinsured Motorists
Auto Physical Damage
Comprehensive
Collision
Drive other cars coverage - A coverage that might be needed by persons who have regular use of a company car, including use for their own personal use. The coverage is for their individual protection, rather than for the protection of the business or firm.




This coverage is used as an alternative to Workers Compensation Coverage. Policies can be custom tailored to include Employers Indemnity, employee disability, medical expenses and accidental death & dismemberment. Highlights of this type of policy include the ability to choose various deductibles, weekly benefit amounts, benefit periods and allows you to select your maximum limit of coverage. Companies choosing not to purchase workers compensation must follow non-subscriber rules such as filing forms with the States Workers Compensation Commission, properly completing OSHA logs, signed notice of no workers compensation coverage in personnel files and posted all federal and state required notices.




Some persons have a liability exposure that can arise from their rendering or failure to render a professional service. If they fail to use the degree of care and skill normally expected of a person in that profession they can be held liable for injuries, property damage or financial loss which can result. For some professions, where the professional act usually involves bodily treatment, the professional liability insurance is called malpractice insurance. Falling into this category are barber, beauticians, masseurs, morticians, pharmacists, veterinarians, and all types of medical practitioners. The services of other professionals principally involve property or finances, and the professional liability insurance is called errors and omissions insurance. This includes accountants, architects, attorneys, engineers, insurance agents, travel agents and others.




This coverage is used to insure against claims arising out of bodily injury and property damage that result from products you have sold, manufactured, handled, distributed or disposed of.




Flood insurance is designed to provide an alternative to disaster assistance to reduce the escalating costs of repairing damage to buildings and their contents caused by floods

Floods are the most common and widespread of all natural disasters--except fire. Most communities in the United States have experienced some kind of flooding, after spring rains, heavy thunderstorms, or winter snow thaws.

A flood is defined by the National Flood Insurance Program as: "A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) from:

• Overflow of inland or tidal waters,
• Unusual and rapid accumulation or runoff of surface waters from any source, or
• A mudflow.

The collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood."

Floods can be slow, or fast rising but generally develop over a period of days. Mitigation includes any activities that prevent an emergency, reduce the chance of an emergency happening, or lessen the damaging effects of unavoidable emergencies. Investing in mitigation steps now, such as, engaging in floodplain management activities, constructing barriers, such as levees, and purchasing flood insurance will help reduce the amount of structural damage to your home and financial loss from building and crop damage should a flood or flash flood occur.




This insurance is used to insure against claims for negligent acts, errors or omissions alleged to have been committed by present or former directors or officers of your corporation.

Claims arise from a number of sources, including:

• Dissident stockholders
• Clients
• Competitors
• Employees
• Government regulatory agencies

The nature of the claim might involve allegations that the directors or officers have been responsible for such things as:

• Loss of value of a company's stock from poor administration, poor judgment or poor supervision.
• Improper use of corporate funds, such as allowing excessive compensation to officers.
• Using their position for personal gain
• Failure to treat creditors equally and fairly
• Anti-trust violations
• Unwise investment of corporate funds
• Misstatement of the corporation's financial position, or failure to disclose important facts to stockholders.
• Improper payment of dividends
• Exceeding authority granted by the character or by-laws

Protection provided by a bond is not insurance. Coverage under an insurance policy involves a two-party agreement whereas in a bond, the person who pays the premium, known as a principal, is bonded for an action by a surety for the benefit of a third party commonly called a beneficiary. Bonds are distinguished between Surety bonds, which guarantee the performance of a contract, or Fidelity bonds, which protect against the dishonesty of employees.




In addition to direct loss or damage to your property, loss can occur as a consequence of the direct damage. Such indirect losses are financial in nature and result from the loss of use of the property directly damaged. Several types of coverage's have been developed to address these indirect loss exposures. The two most common forms of protection for these types of losses are Business Income Coverage Form and Extra Expense Coverage Form

Business income Coverage - Just as a firm buys fire insurance to reimburse it for loss to its property, it may need business income coverage to reimburse it for its expenses that the firm cannot-or does not -wish to discontinue. Usually, it is written to cover losses resulting from either the same insured perils as are on the building or as are on the business personal property, which will be the Basic Form, Broad Form or Special Form.

Extra Expense Coverage - The term "extra expense" refers to the costs a firm may incur which are in excess of the costs it normally has of doing business, and which are arise because a property loss has occurred. For example, if it will take several months for repairs to be made at the damaged location, it may appear to be desirable to rent another building and move the business there temporarily. Of course, such a move will cost additional rental expense, plus the cost of moving there (and back), and special advertising to let the customers know where the business is now located.




Employment practices liability (EPL) insurance provides coverage to individual employees and the corporation for wrongful employment practices claims. "Wrongful employment practices" can include:

• Failure to promote
• Wrongful dismissal (including retaliation)
• Misrepresentation
• Discrimination
• Negligent evaluation
• Wrongful discipline
• Defamation
• Invasion of privacy
• Emotional distress
• Harassment

EPL insurance is for companies or organizations with one or more employees.