A properly structured commercial insurance program is important to both the short and long-term health of your organization. To protect the viability of a company, a thorough analysis of exposures to loss and options to pay for future losses through procurement of insurance must be considered. There is no “one-size-fits-all” solution to commercial insurance, as every business has its own unique needs and objectives.
Our agency provides commercial insurance solutions to a variety of business industries including: Oil & Gas, Manufacturing, Construction, Aviation, Healthcare, Transportation, Hospitality, Retail and Non-Profit. We want to be your Trusted Advisor for insurance and risk management matters. Let us conduct a thorough review of your existing program and discuss strategies for improving your Total Cost of Risk. Contact us today to schedule a visit with one of our insurance professionals!
If you are just getting started with insurance or are an established organization and want to learn a bit more about key areas to insure or primary types of policies to insure, below is a quick reference guide.
Four primary areas to insure:
The risk of property loss is apparent in a variety of commercial situations, including commercial buildings, equipment, furniture, fixtures, inventories, organization records, supplies, automobiles and other physical items. There are two primary types of property losses:
- Direct losses when property is lost, stolen, damaged or destroyed Indirect or consequential losses related to direct losses.
- Indirect or consequential losses related to direct losses.
The risk of loss from a liability stems from another party including the loss from the actual claim as well as defense costs. These four primary areas of liability are applicable for most companies:
General Liability is liability for bodily injury and property damage arising out of your:
- Premises and Operations (including no fault medical payments)
- Products and Completed Operations
General Liability is also liability from third parties arising from:
- Fire Damage Liability (damage by fire to premises rented to insured)
- Personal and Advertising Injury
- Auto Liability is liability associated with the operation of vehicles that are owned, leased, hired or borrowed by organizations, whether they are associations, corporations, partnerships or sole proprietorships. Auto liability typically includes that liability that comes from underinsured or uninsured drivers.
- Executive Liability is liability from the management of your company in the following areas: as an employer, as a director or officer, & as a fiscal agent. Common losses from this liability include discrimination, sexual harassment, wrongful termination, wrongful discipline, breach of duty, security law violations, unfair competition, ERISA violations, negligent advice, careless plan management, and errors & omissions.
- Professional Liability is liability resulting from acts, errors or omissions in your performance of professional duties. Common losses from these liabilities include: negligence, misrepresentation, design errors, violation of good faith, and fair dealing & inaccurate advice.
- Cyber Liability is liability resulting from the loss of customer information that was stored or communicated electronically.
The Human Capital exposure for organizations primarily revolves around these key areas: employee acts, employee health, & employee morale/retention. Employee acts are addressed in the liability section related to work product. Employee health is an employment exposure that is addressed with both workers compensation coverage and health insurance. Employee morale/retention is not necessarily an insurable item; however not properly insuring your organization, particularly in this area, in some instances does lead to lower morale/retention.
Whether you are a non-profit or a for-profit organization income is critical to the survival of any organization. Each area mentioned above has a direct correlation to the loss of income if not properly addressed. It is critical for organizations to make sure that loss of income and profit where applicable is properly protected.