Do you need to find the Cheapest Liability Business Insurance
or “local car insurance agents near me” in California?
This is an important practice many people find themselves doing
every renewal period. This is regardless if your business is located in
Orange County CA, or Los Angeles CA?
Car insurance quotes comparison is a different process then different
types of best small business insurance. Coverage options vary
depending on operational needs of your business.
For example, you may need insurance van commercial vehicle coverage
or just commercial truck insurance. No matter the reason, or industry type.
protection of your future is first and foremost.
Personal Insurance Coverage vs. Business Policy
These coverage needs will have special underwriting guidelines
different to that of a personal auto policy however.
This makes the quoting process longer, since more
information is needed to collect and rate your risk.
This is because there is a lot more involved in a
commercial insurance policy versus a personal lines policy.
Not only is the premium amount a lot higher,
but the type of exposure is a lot more.
Thus, reason for the increase in premium costs.
Just picture the dollar amount of a large big rig truck accident versus a personal size vehicle.
This will put this type of coverage into better focus.
So, before you actually begin your quoting process, follow these simple steps below:
- You will want to start with a checklist before you even begin this process.
- This will outline what types of policy options are available to you.
- In addition, this will limit the number of carriers to shop rates in.
- This small pool will have the right protection without any gaps in coverage.
Having said that, it is always good to look
at what a Business Owner Insurance policy actually covers.
Name Coverage Options – Commercial Insurance
Commercial Coverage provides a broad package of
insurance coverage’s for small and medium-sized apartment buildings, offices, and retail stores.
Mandatory coverage on each policy include property
and liability coverage’s with optional coverage’s at request.
Many of the standard conditions and exclusions apply
on your BOP policy, which is a self-contained, complete insurance package policy.
So let’s dive into what exactly this program is and
what it has to offer and what to expect.
Expectations of Business Insurance
BOP forms are modeled after the coverage components
of the commercial package policy program, and have similar
exclusions and coverage’s A, B, and C of the Commercial General Liability coverage policy.
The same wording, organization of coverage’s, and design
follow the CPP. BOP program coverage parts are attached to
the policy declarations and a business owners common conditions form.
ISO has made recent changes in the BOP program as of the year 2002.
Commercial Insurance Coverage and Policy Protection
Business owners’ coverage– a necessity for all small and medium-sized businesses.
This protection generally comes in packages that contain five or six
fundamental coverage’s for a lower premium than
individual policies would otherwise provide.
Before we examine each of the coverage parts lets
look at the complete contract of a BOP.
First Policy Section
The first part includes what is called the policy insurance declaration page.
This is an important document you will find in your policy packet.
Your policy packet will have many pages but the first page is your declaration page.
On this page you will find your:
- policy number,
- name of the insurance company,
- name of producer,
- name and address of the named insured,
- and the policy period.
Commercial Declaration Page
This is important information to look over closely.
A commercial auto insurance policy declaration page
may look a little different than a farmers business insurance policy.
Different types of coverage at stake plus limits of coverage and policy options.
Policy Declaration Page Sections
This information will included where your
future documents will be mailed to.
Make sure it is updated and accurate in
case your carrier needs to get a hold of you.
So at first glance, you will find the most pertinent info.
You will find on this same page, spaces.
These spaces are provided for following items:
- a description of the operation,
- the form of the operation,
- locations of the described premises,
- and name and address of any mortgage holder.
The second part of this program within the contract is the Coverage form,
and lastly endorsements are required to make any policy changes.
Remember to look for the limits of coverage which will be shown for
buildings and for personal property on your commercial insurance policy.
Limits of insurance for optional coverage will be shown,
and optional coverage’s will apply, only if the appropriate
boxes are checked indicating that optional coverage’s apply.
Now moving onto the next section on your
declaration page, is coverage’s on your owners policy.
Property Casualty and Liability Insurance Coverage
Casualty and liability coverage provide protection in the event that your
employees or products cause harm to customers and others, or to their property.
It addresses the fallout from a particular product that causes personal
or physical damage; accidents such as “trips and falls”.
The trip and fall incident must occur within a business location for be covered.
Some other incidents that are included on this program are as followed:
- copyright infringement;
- invasion of privacy;
- or if an employee cheats a customer or
- otherwise fails to perform expected duties that result in loss of sales or reputation.
Business-interruption protection is a must.
Every business owner understands the importance of maintaining
a business flow, regardless of any internal or external factors.
This is important, since many business owners are small business owners.
Just because coverage is purchased on the building or actual
business itself, does not provide future security.
Anyway of making money throughout the process of recovery is turned off.
If you own a restaurant for example, but lose your kitchen in a
covered loss, then what? In this case, you would need
to look at business interruption coverage
What does this Mean?
What this means, is what happens if your business burns down.
Not only did you lose your actual business operations, but also any
potential to make money during this loss and loss recovery.
It covers the following:
- losses that arise from reduced or halted operations,
- and provides compensation for ongoing expenses (such as salaries, rent/mortgage and utilities)
- and lost profits.
Insured losses are normally covered for up to one year after the initial
occurrence, although individual policies may extend this time frame.
Property Coverage Options
Property coverage is another important feature
found on this type of commercial policy.
It covers the following items:
- covers a company’s headquarters
- and sales/production facilities,
- as well as their contents everything from inventory
- and supplies to money
- and machinery.
- Even less tangible assets including trademarks can be covered.
- Fire, damage and theft are the most common types of protection.
Insurance Companies can mitigate their coverage premiums.
They can do this by taking steps such as installing alarms
and sprinkler systems, as well as hiring
security guards to protect against shoplifting.
Crime Coverage – Commercial Policy Provision
What is crime coverage? Good question, and you just
might see it on your business insurance policy.
So, without further ado, crime coverage covers robberies,
burglaries or intentional destruction of property.
It also protects against employee embezzlement and theft,
and the loss of trade secrets or plans stolen by employees, contractors and others.
Precautionary devices such as alarm security and
well-defined employee screening procedures
generally reduce this insurance’s cost.
Flood or Earthquake Policy Coverage
Generally, flood insurance or earthquake coverage is considered as a
specialized coverage. This type of coverage depends
on the company’s physical location or that of its production facilities.
In areas that are prone to such natural disasters,
this protection can be both costly and difficult to obtain.
- Yet organizations such as the National Association of Professional Insurance Agents support federal legislation.
- This legislation will be to coordinate a natural disaster catastrophe program.
- This program covers commercial and residential property
- and does not compete with the private sector’s capacity to provide insurance.
Policy Insurance Eligibility
The type of commercial insurance risks that are eligible for this program are as followed:
- apartment buildings that do not exceed six stories in height and that do not have more than sixty dwelling units.
- office building that do not go over six stories in height and that do not exceed 100,000 square feet in total area.
- mercantile risk that do exceed 25,000 square feet and do not have annual gross sales that exceed three million.
- service or processing type risks that do not exceed 25,0000 square feet and do not have annual gross sales in excess of 3 million. This provided however, that no more than 25 percent of the gross sales are derived from off premises operations.
- operators are defined as tenants and are eligible under this program.
- residential condo associations and office condo associations are eligible. Service and processing risks are newly eligible for coverage.
- Self storage facilities
- Fast food and limited cooking restaurants up to 7,500 square feet.
- Convenience stores with gasoline sales of up to 75 percent of the total revenue
- Dry cleaners that clean on premises.
This specialize insurance program is designed to provide coverage
for a variety of landlords and operators who have moderate exposures.
For this reason, eligibility is defined to exclude certain
risks which do not fit the intended exposure pattern.
Ineligible Risks for BOP
For every type of risk accepted under this commercial insurance program
are risk that are not acceptable.
Some of these risks are as followed:
- automobile dealers and all types of automotive repair and service operations
- banks and all types of financial institutions
- places of amusement
These type of risks all have certain and special exposures and is
why they are listed on this unacceptable lists of risks on your policy.
These types of risk must be insured outside of the BOP insurance program.
The General Policy Declarations
After you have done all your homework, which includes price shopped,
compared the best rates to coverage and the right carrier, your ready.
- The next step is to buy the policy. Your new policy will include the declaration page in it.
- This is your most important policy information at a snap shot.
- The most common questions can be answered on this front page.
- It is a convenient and helpful way to find information fast.
- This is a very normal technique when shopping for cheap business insurance.
- Just compare your declaration page to other competing rates.
- This will make sure you are not buying gaps in coverage.
Coverage and Limit Information
The policy declarations will show your coverage information in addition to your limits of coverage.
Very important if you are satisfying coverage for an additional insured.
If there are additional parties that you want to include on your policy,
this is the page you will find this information on.
The great starting point on your policy program is at your declaration page.
Like we discussed earlier, it’s fast and easy to process information.
If you have a simple question about coverage options,
itemized premium breakdown, or who has been listed on your
policy as an addition insured, this is where you will find this information.
More importantly, if any policy changes are made, you will find it on this page.
Keep in mind that every time that you make changes to your policy,
these changes will reflect on your declaration page.
For example, you may switch your additional insured several times
throughout your policy term, this is where you would see the changes.
So, keep this is mind when debating on throwing out your paperwork.
California General Insurance Questions
If you have any questions regarding coverage information or need
help with Small Business General Liability Insurance in California don’t worry. We have answers.
We compare rates with the list auto insurance companies
do not provide. Simple reason, because small business liability insurance
is different then getting auto insurance quotes.
So, if your operation is located in Ontario CA, or Riverside CA,
we can help. We understand your market and niche and have specialty agents working for you.
We offer local cheap car insurance and BOP coverage in California.
Service Areas: Anaheim, Huntington Beach, Fullerton, Torrance, Los Angeles, Ontario, Fontana, Moreno Valley, Pomona.
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- Kevin Adams