Commercial Insurance- Introduction and Types
Commercial Insurance:- Commercial lines insurance includes property and casualty insurance products for businesses. Commercial lines Insurance protects businesses from potential losses caused by accidents, natural disasters and other adverse events.
Here are the list of Commercial Insurances and their Line of Business (LOB) codes:
1. Inland Marine Insurance: Inland Marine insurance generally covers property that is movable or transportable in nature.
LOB Code : INMRC
Example – Transportation coverage for property shipped by or to you via common carriers.
2. Workers’ Compensation: An employee can only receive benefits if their injury or illness relates to their job duties or employment. Workers’ comp insurance would cover injuries caused by lifting heavy equipment, slipping on a wet or oily surface, or sustaining injury due to fires or explosions.
LOB Code : WORK
3. General Liability: Commercial General Liability insurance helps protect businesses and their employees from the risk of lawsuits involving claims of bodily injury, property damage, libel, slander, false advertising.
LOB Code : CGL
Commercial Liability Insurance coverage can help cover the costs related to claims of
- Bodily injury or property damage – for claims that your business caused someone bodily harm or damaged someone’s property.
- Medical payments – to help cover medical costs if someone sustains an injury at your business.
- Damage to rented property – if property you rent is damaged by fire, lightning or explosion.
4. Commercial Umbrella : Increases and broadens liability coverage, filling in gaps left by other coverages.
LOB Code : CUMBR
5. Commercial Package : Under a CPP, a business owner may combine different coverages and package them.
LOB Code : CPKGE
6. Accounts Receivable and/or Valuable Papers : Accounts Receivable Insurance protects a company when customers fail to pay what they owe. But this coverage does more than just maintain your balance sheet. Accounts Receivable coverage can strengthen your company by increasing your borrowing capacity and helping you expand sales and profitability.
LOB Code : VALP
7. Business owners : Business owners insurance, also known as BOP insurance, is a policy that combines both property and liability coverage into one package. It’s popular among a variety of small and medium-sized businesses such as restaurants, wholesalers, retail stores and contractors.
LOB Code : BOP
8. Commercial Fire : Most businesses that own property need insurance to protect themselves against damage caused by fire. Fire insurance for businesses is widely available. Many insurers that sell business insurance offer this coverage.
LOB Code : CFIRE
9. Directors and Officers : Directors and Officers Insurance covers management and executives for claims made against them while they are serving on a board of directors and/or as an officer of an organization. In layman’s terms, Directors and Officers Insurance covers claims resulting from decisions and actions taken by company managers as part of their job duties. An organization’s officers typically include key executives and managers, but not all employees.
LOB Code : DO
10. Commercial cyber and privacy liability : Cyber insurance generally covers your business’ liability for a data breach involving sensitive customer information, such as Social Security numbers, credit card numbers, account numbers, driver’s license numbers and health records.
LOB Code : INTER
11. Crime insurance : Commercial crime insurance is a type of business insurance designed to protect a business from losses due to third party fraud or employee fidelity. Business crime causes a certain degree of uneasiness for any business, regardless of the security measures in place. Commercial crime insurance protects the small business owner from employee dishonesty, theft of money (or securities), burglary, robbery, forgery and computer fraud.
LOB Code : CRIM
12. BOP property : A BOP is a package policy typically combining General Liability and Property Insurance, along with other optional coverage, for small to medium sized businesses in lower risk businesses classes. A BOP may be available depending on the type of business, annual sales, number of employees and other factors.
LOB Code : BOPPR
13. Boiler And Machinery Insurance : Boiler And Machinery Insurance (BM) provides coverage for physical damage to and financial loss from equipment breakdown. Boiler and machinery insurance, also called equipment breakdown insurance.
Boiler and machinery insurance covers the risk that equipment, used by a business to deliver goods and provide services, will not function properly. Companies purchase this type of insurance to protect equipment much in the same way as property insurance protects buildings and liability insurance protects workers from injuries.
LOB Code : BANDM
14. Business automobile : A business automobile policy (BAP) provides coverage for a company’s use of cars, trucks, vans and other vehicles in the course of carrying out its business.
Coverage may include vehicles owned or leased by the company, hired by the company, or employee-owned vehicles used for business purposes. A BAP covers both liability and damage.
LOB Code : AUTOB
15. Internet Liability : Internet Liability Insurance is recommended for any computer based business with an internet presence that sends and receives information by email, downloads documents or holds personal and sensitive data.
- Financial losses caused by the failure of a company website, collapse of your internet provider, phishing, or the work of computer hackers.
- System damage caused by viruses or malware you may have unknowingly transmitted via email or the internet.
- Unknowing copyright or trademark infringement.
LOB Code : INTER
16. Garage and Dealers : Garage program designed for the following targeted industries: Used Car Dealers, Repair Shops, Paint and Body Shops, Mobile and Manual Car Washes and other Auto Service Related Risks.
LOB Code : GARAG
17. Employment practices liability : Employment practices liability insurance (EPLI) covers businesses against claims by workers that their legal rights as employees of the company have been violated.
LOB Code : EPLI
EPLI provides protection against many kinds of employee lawsuits, including claims of:
- Sexual harassment
- Wrongful termination
- Breach of employment contract
- Negligent evaluation
- Failure to employ or promote
- Wrongful discipline
- Deprivation of career opportunity
- Wrongful infliction of emotional distress
- Mismanagement of employee benefit plans
18. Flood : Commercial Flood Insurance helps protect your business from the damage costs that come from floodwater. A commercial flood insurance policy will not only protect the location of your business but also the physical contents and assets. A commercial flood insurance policy is designed to protect your business if your floors, walls, ceilings, equipment and fixtures as well as furniture, inventory and business property sustain flood water damage.
- You run your business in an area that has cold, snowy winters and warm springs. Fast melting snow is one of the top causes for commercial flooding.
- You experience moderate rainfall during the year. Even with moderate rainfall, a drain could become clogged and eventually overflow into your place of business and cause flood damage.
LOB Code : FLOOD
19. Watercraft insurance : Watercraft insurance is an insurance policy that provides coverage for boats and personal watercraft. Watercraft insurance, also known as boat and personal watercraft insurance, often includes towing and wreckage removal, as well as fuel spill indemnification. This type of insurance may be purchased for sailboats, house boats, and pontoon boats, as well as other watercraft up to a certain size and value.
This is because different types of watercrafts carry different risks. For example, a sailboat and a pontoon boat are characteristically different types of watercraft. Watercraft insurance does not provide liability coverage for injuries caused by the operation of the boat or watercraft.
LOB Code : BOAT
20. Commercial Property : Commercial property insurance is used to cover any commercial property. Commercial property insurance protects commercial
property from such perils as fire, theft and natural disaster.A variety of
businesses, including manufacturers, retailers, service-oriented.
LOB Code : PROP