Business clients have a range of property insurance needs, including buildings, equipment, stock, mobile equipment and tools to name but a few. A Broad Form policy provides “All Risk” coverage for your business property and is the most extensive coverage available. We also will review the importance of different property insurance extensions such as Business Interruption, Extra Expense, and Earthquake coverage. Businesses all have unique insurance exposures and we will work with our clients to find unique solutions that fit their business.
Commercial General Liability
A business needs to be protected if they are sued for bodily injury or property damage resulting from their business operations. The Commercial General Liability (CGL) policy is what addresses this risk. We will review your business operations to determine the appropriate limit and type of coverage for your business needs. The CGL may include extensions such as Tenants Legal Liability, Non-Owned Auto Liability, among others.
While this is a type of property insurance, it is important enough to note on its own. If a business was to have an insured claim such as a fire, the repairs and replacement of their property is only a part of the loss they have suffered. The lost income that occurs if the business is forced to shut down or reduce their operations can be every bit as devastating, especially if it is for an extended time. Business Interruption coverage provides for coverage for this lost income, and without this protection, a business may never be able to recover from such a shutdown. The two main types of this coverage are Gross Earnings and Profits forms. The difference between the two is the time limit they indemnify you for. Gross Earnings will pay for lost income until the repairs are complete and the business can be opened once again. Profits goes further, and pays until income is back to its pre-loss levels, as it often takes time to start getting your regular customers back after a shutdown. There are other important options such as Ordinary Payroll coverage which would also be reviewed when looking at this type of insurance.
Vehicle coverage can be an important insurance issue for many businesses. We expand on many of these issues in more detail on our auto insurance page, but certain considerations such as higher liability limits, the use of the vehicle, principal operators, and fleetplan discounts are all important to vehicle insurance for a business. The special coverage provided by an ICBC Garage Policy will be needed for businesses who take customer’s vehicles into their care.
This can be a coverage that is often overlooked. Regular property insurance policies specifically exclude damage caused directly by mechanical or electrical breakdown. An equipment breakdown (or “Boiler & Machinery”) policy can be purchased to cover this exposure. This is particularly important for businesses with boilers and other pressure vessels, often used in manufacturing, but because of the risk of electrical breakdown from power surge, it is a coverage that is actually very important for most commercial buildings.
Unlike a CGL policy, which covers bodily injury or property damage liability, professional liability coverage is to cover an individual or a business if they are sued for errors and omissions made in the providing of a professional service. Physicians, lawyers, engineers, accountants, environmental consultants and a wide range of other professionals have a need for such insurance coverage, in addition to their primary CGL policy.
A product designed primarily for the construction industry, Surety Bonding is not actually a type of insurance. Instead of an insurer covering against loss or damage, a surety bond is a three-party contract where a surety company provides a guarantee to one party (the Obligee) that another party (the Principal) will meet some sort of obligation (typically the fulfillment of a contract). On large construction projects, contractors often must provide Bid Bonds to confirm they won’t walk away from a job if awarded it, as well as final bonds to guarantee their Performance and the Payment of any sub-trades and suppliers. There are a range of other bonds, but these three are the most common. At Brownridge & Company we have a surety specialist who helps set up and maintain your bonding facility throughout the year.
There are many other forms of commercial insurance coverage. At Brownridge & Company we also provide Course of Construction, Wrap-Up Liability, Directors & Officers Liability, Aviation Insurance, Motor Truck Cargo, Environmental & Pollution Liability, Commercial Marine, Fiduciary Bonds, Umbrella Liability, Special Events Liability and others. We review each client’s business operations to determine exactly what insurance coverage is necessary.