Business Insurance FAQ

What's Business Insurance?
What's Certificate Of Insurance ?
How Much Is Business Insurance ?
What's An Additional Insured ?
What's A Certificate Holder ?
Does My Home-Based Business Need Insurance?
What does workers' compensation insurance cover?
ISO Form CG 2037
ISO Form CG 2010
Waiver Of Subrogation
Primary And Non-Contributory Wording
Claims Made vs. Occurrence Policy
How can I lower my business insurance
Admitted vs. Non-Admitted Insurance Carriers: A Quick Guide
"Per occurrence" vs. "aggregate" limit work in general liability policies

What's Business Insurance?

Business insurance is essential to protect your enterprise from unexpected setbacks. Here's what it generally covers:

Property Damage: Protects your physical assets.
Liability Issues: Safeguards against legal claims.
Employee Injuries: Covers worker's compensation.

Having business insurance provides peace of mind, ensuring that unexpected costs won't derail your operations.

Certificate Of Insurance (COI)

Certificate of Insurance is a document that provides proof of your insurance policies. It outlines the types of coverage, the limits, and the policy period. Asking "What's Certificate of Insurance?" is the first step in understanding its role in safeguarding your interests. This certificate is particularly vital during contractual agreements, assuring all parties that you're adequately insured.

How Much Is Business Insurance ?

The cost varies significantly depending on your business type, size, and risk factors. So, "How Much Is Business Insurance?" is best answered by examining your business's specific needs. A small business might pay between $300 to $1,000 per year, while larger businesses might pay significantly more. It's essential to connect with an insurance professional to determine the right coverage for you.

What's An Additional Insured ?

"Additional Insured" refers to a person or entity that's not automatically included as an insured under an insurance policy. Here's what Additional Insured typically covers:

Legal liability: They're protected against claims or lawsuits related to the primary policyholder's activities.
Property damage: Coverage extends to any property damage tied to the primary policyholder's actions.

The question, "What's an Additional Insured?" is vital for anyone involved with contracts or rental agreements to ensure comprehensive coverage.

What's A Certificate Holder ?

A "Certificate Holder" is a crucial term in insurance. Here's what it generally implies:

Proof of Insurance: A Certificate Holder is the entity that receives confirmation of an insurance policy.
Not a Party to Policy: Although they receive proof, a Certificate Holder is not necessarily covered by the policy.

So, "What's a Certificate Holder?" It's typically a third party who needs assurance that you carry valid insurance, but they may not benefit from the policy's protection.

Does My Home-Based Business Need Insurance?

Yes, your home-based business does need insurance!. Many entrepreneurs mistakenly believe that their homeowners' insurance will cover their business operations, but this is typically not the case. Home-based business insurance can protect you from business-related losses. For example:

If a courier were to get injured delivering a business package to your home, your homeowners' insurance might not cover their medical expenses.
If your business equipment is damaged or stolen, homeowners' insurance might not cover the loss.

You might need several types of insurance for your home-based business, such as general liability insurance, professional liability insurance, or a business owner's policy, depending on the nature of your business.

What Does Workers' Compensation Insurance Cover?

Workers' compensation insurance covers medical expenses and a portion of lost wages for employees who become injured or ill on the job.

This applies to W2 employees only.

Claims Made vs. Occurrence Policy

"Claims-Made" and "Occurrence" are two different types of policies in liability insurance, and they determine how and when a policy will respond to a claim.

Claims-Made Policy: This type of policy provides coverage for claims only when both the alleged incident and the resulting claim happen during the period the policy is in force.

For example: If a claim is made against you after the policy period ends, even if the incident occurred while the policy was active, the claim will not be covered.
Occurrence Policy: This type of policy provides coverage for any incident that occurs during the policy period, regardless of when a claim is filed. So, even if the policy is no longer in effect when a claim is made, as long as the incident happened while the policy was active, the claim should be covered.

The type of policy you choose can significantly impact your coverage. Occurrence policies are generally preferred because they provide long-term protection against incidents that occur during the policy period, but they can be more expensive than claims-made policies.

How Can I Lower My Business Insurance ?

There are several friendly tips we can share to help you bring down your insurance premium.

Sometimes, we find that folks might be carrying a bit more insurance than they need - it's a common thing, no worries at all! If you'd like, feel free to send over your current insurance policy.

We'd be more than happy to take a look, and we'll share any recommendations we might have. And don't worry about the cost - this is on the house, our treat! Give us a call (888) 900 0205

Admitted vs. Non-Admitted Insurance Carriers: A Quick Guide

1. What's the Difference?

Admitted Carriers: Approved by the state, they follow its rules and have a safety net (state's guarantee fund) in case they face money issues.
Non-Admitted Carriers: Not approved by the state. They don't have to follow state rules and don't have the same safety net. They might offer unique insurance deals but come with higher risks.

2. State-Specific Approval: An insurance company can be approved (admitted) in one state but not approved (non-admitted) in another. Always check their status in your state before buying.

3. Pricing Differences:

Admitted Carriers: Their prices are more stable since they follow state guidelines. The state ensures their rates are fair.
Non-Admitted Carriers: They cover wider range of risks, have flexible prices and are sometimes cheaper. They may offer insurance coverage that is not available from admitted insurance companies.

"Per occurrence" vs. "aggregate" limit work in general liability policies

Per occurrence
The maximum your insurer will pay for a single claim.
For example: If your per occurrence limit is $1 million and an accident at your job site results in a claim for $1.2 million, the insurance company would pay $1 million, and you would be responsible for the remaining $200,000 (unless you have other insurance in place, like an excess policy).

Aggregate
The maximum your insurer will pay out over the policy term, typically a year.
Once your aggregate limit is exhausted for the policy term, you would be responsible for any additional claims until the policy renews.

Endorsements & ISO Forms

We’re big believers in keeping things simple, so ask us anything and we’ll answer honestly and without the jargon.

CG 2037 (Completed Operations)

The CG 2037 insurance form, commonly known as the Additional Insured – Owners, Lessees or Contractors – Completed Operations endorsement, is used in commercial general liability (CGL) insurance policies.

This form specifically extends coverage to include an additional insured for liability arising out of the named insured's completed operations. "Completed operations" refers to work that has been finished, such as a construction project.

For example: If a contractor completes a building project, and later on, an issue arises causing harm (like a part of the building collapses), the property owner (if listed as an additional insured under CG 2037) would have coverage under the contractor's policy for any potential liability related to that incident.

CG 2010 (Ongoing Operations)

The CG 2010 is a specific form used in commercial general liability (CGL) insurance policies. This form is known as the Additional Insured – Owners, Lessees, or Contractors – Scheduled Person or Organization endorsement.

This endorsement extends the policy's liability coverage to include an additional insured, typically the client or project owner, for liability arising out of ongoing operations performed by the named insured or on their behalf.

For Example: If a contractor is working on a building and accidentally causes damage to the property, the property owner, if listed as an additional insured under CG 2010, would have coverage under the contractor's insurance policy for any potential liability related to that incident.

It's important to note that the CG 2010 only covers "ongoing operations," meaning work that's currently being performed. It does not extend to completed operations.

Waiver Of Subrogation

A Waiver of Subrogation is a clause found in business insurance policies. It prevents an insurance company from seeking reimbursement from a third party that caused a loss to an insured party.

After an insurance company pays a claim, it has the right to recover its loss from any party that contributed to the loss - this process is called "subrogation". However, when a Waiver of Subrogation is in place, this right is waived.

These waivers are common in commercial leases and construction contracts.

For example: A building owner may require a tenant to include a Waiver of Subrogation in their renter's insurance policy, so if the tenant accidentally causes damage to the property, the building owner's insurance company cannot seek to recover the claim amount from the tenant or the tenant's insurance.

Primary And Non Contributory Wording

"Primary and Non-Contributory" wording is a term in insurance, especially in the context of liability insurance.

"Primary" means that the policy will pay out on a claim before other policies (which are considered "secondary") pay. In other words, if a claim is filed, the primary policy pays first up to its policy limits, and then the secondary policy would pay if the primary policy's limits were exhausted.
"Non-Contributory" means that the primary policy will pay its full policy limits on a claim and will not seek contribution from other policies that also provide coverage.

A policy with Primary and Non-Contributory wording will be the first to pay in the event of a claim and will not seek to share the cost of the claim with other policies.