Business Liabiliity and Property insurance are there to protect you from damage to yours or another's possessions or self.
Liability Insurance is there to protect you from damage done to others. Sometimes, the terms used for Liability Insurance can be a little confusing. Below we've listed a few definitions that might help to clear things up.
Property coverage covers damage to your own buildings or personal property. Your Business policy might be written in different coverage forms: basic, broad, or special, and may be covered for Replacement Cost or Actual Cash Value. For more information on different coverage forms and Replacement Cost vs. Actual Cash Value, click the links below. Scroll down for a more complete description of Property coverage.
Commercial Liability Policy Terms
Premises and Operations
Premises and Operations covers your business premises, such a store or office, and also your off-premises operations, such as a contractor. This is written $$$/per occurrence.
Products and Completed Operations
Coverage for injury or damage caused by the product that you make or sell is provided by Products and Completed Operations.
Personal and Advertising Injury
Personal and Advertising Injury covers lawsuits due to incorrect advertisement.
Damage to Premises
Damage to Premises pays for damage you caused to premises you rent.
Injury to somebody injured on your property, that is not your fault, is covered by Medical Payments.
The Aggregate Limit is an annual combined limit of all of the above coverages. It generally doubles or triples the Premises and Operations limit.
Commercial Property Insurance
Property coverage covers damage to your own buildings or personal property. Your Business policy might be written in different coverage forms: basic, broad, or special. For more information on different coverage forms, see the link above. Your buildings and personal property can be listed on an individual schedule or insured on a blanket coverage, basis. An individual schedule is best when there are only a few items to insure, largely due to the difference in premium. A blanket is best for larger inventories, and insures each individual item for its actual cash value at the time of a loss. In addition, they might be insured under a replacement cost basis, or be written on an actual cash value/depreciated basis. For more information on replacement cost and actual cash values, see link above. Equipment breakdown, lost income, and extra expense coverages are optional.