Business and Commercial Insurance

If an employee steals a large amount of money or merchandise, or small amounts over a period of time, these losses are usually covered by a fidelity bond. Insurance policies and fidelity bonds are very similar, with the difference being the number of people involved in the agreement. 

An insurance policy is between two parties, the insured and the insurer. The bond involves three parties, the principal, the obligee and the guarantor. The employer is the obligee, the principals are the employees (they may be unaware and not an active party) and the guarantor pays out the loss.

Burglary involves theft by illegal forced entry. Evidence of damage is necessary to confirm the burglary. Robbery is defined by a witness. If theft occurred and a person is present, and was threatened with bodily harm, a robbery has occurred. Theft is very broad and means any act of stealing. It includes burglary and robbery as well as other dishonest acts.

The key words here are "object" and "accident." Examples of objects:

• Pressure and refrigeration objects - boilers, electric steam generators, steam piping, refrigeration, air conditioning
  
• Mechanical objects- engines, pumps, fans, pumps, miscellaneous machines
  
• Electrical objects - electrical machines, transformers, other miscellaneous electrical apparatus
  
• Turbine objects - turbines, components of gas turbine unit
  
• Comprehensive coverage - includes all insurable boiler and machinery. Can be written to include, or exclude, production equipment
  

Accident is defined as the sudden and accidental breakdown of an object or part that requires repair or replacement. It does not cover situations such as wear and tear, corrosion, leakage or computer or EDP equipment.

This is much like personal inland marine.

This covers your movable property, whether or not you move it or not. It gets its name from the days when cargo ships were the major means of transporting goods, and insurance policies were written to protect owners from the loss of those goods.

Today, it covers everything from PCs, telephone switchboards, cameras, and musical instrument dealers to physicians' and surgeons' equipment - or the fine art hanging on your office wall.



Careful records of your insured items must be kept, police must be notified if a law is broken, and the insured are subject to under-oath questioning.

A business auto policy is used to insure vehicles which are owned, leased, hired or borrowed by businesses. The policy is divided into 5 sections:

• Covered autos
  
• Liability coverage
  
• Physical damage coverage
  
• Business auto conditions
  
• Definitions

Covered autos can mean "any" auto or coverage can be tailored depending of the use of that particular auto. Liability can be purchased for one auto, and physical damage coverage for only some of the autos. We discuss each situation with you to determine the insurance needs of that vehicle.

Liability coverage is usually written with a single limit of liability. Split limits need to be endorsed separately. The policy covers the insured's legal obligations for bodily injuries or property damaged, covered pollution costs and the insurance company defends, investigates and settles suits and claims.

Physical damage can include three separate agreements, Comprehensive Coverage, Specified Causes of Loss Coverage and Collision Coverage. The insured may select the coverages and the vehicles to which each will apply. Some vehicles can be insured for comprehensive while others may be insured to cover only specified causes of loss.

There are a number of business auto conditions that apply to the policy in addition to the common policy conditions. For instance, and appraisal is provided for if the insurer and insured disagree on the amount of a loss. The insured is required to comply with certain duties with regards to promptly informing the insurer of any claims, summons or other legal papers. We thoroughly explain all conditions to you so as to avoid any misunderstanding.

A business auto policy includes certain definitions which define key terms applicable to automobile insurance. These are provided to you with any written policy.