Property & Casualty Insurance: What coverages are often missed?


June 3rd, 2019

When you think of Property & Casualty Insurance, we all know the basic coverages: 

However, there are coverages that are missed, overlooked, misunderstood and under purchased. If you don’t have an agent who is looking out for your best interests, you could be in trouble if you aren’t covered for some of these exposures that are not as well known. 

 

What Commercial Insurance coverages are often missed?

Employment Practices Liability. This is written as a stand alone policy or as an endorsement to your business owners policy. This coverage protects you if you or your business are ever named in a claim alleging wrongful termination, discrimination, harassment, failure to promote and other employment related claims. Did you know that more than 40% of all Employment Practices Liability claims are filed against employers with 15–100 employees? 

 

Sexual Abuse/Molestation Coverage. This coverage is especially important if you host any events for children, the elderly or those with intellectual and developmental disabilities. Claims related to abuse or molestation acts can incur high costs, including settlements, judgments and other obligations. 

 

Auto Liability & Physical Damage Coverage. Do any of your employees drive their own car during business on behalf of your organization? This would be covered under Hired & Non-Owned Auto Insurance. Do any of your employees rent a car during business on half of your organization? This would be covered under Employee Hired Auto. But what if they damage the rented vehicle? This would be covered under Hired Auto Physical damage.

 

Voluntary Workers Compensation Coverage. This affords workers compensation benefits to individuals who aren’t covered under state workers compensation laws. It’s an optional coverage that employers may purchase voluntarily. Do you have volunteers working on behalf of your organization? If so, you should consider this coverage. 

 

Employee Dishonesty & Crime Coverage. More businesses fail because of employee theft then because of fire. Read that again. More businesses fail because of employee theft then because of fire. Did you know that employee theft in the United States is estimated to be upwards of $40 billion a year? Employee Dishonesty coverage protects you from financial loss due to employee theft of money, securities, or property. 

 

Fiduciary Liability. This is to protect individuals charged with the responsibility of creating, managing, and administering employee benefit plans within organizations. It includes Employee Benefits Liability. 

 

Flood Coverage. Most policies cover water damage from the “top-down” but not water damage caused from the “bottom up”. Problems arise when water is on or below the surface of the ground and enters through the foundation or by backup through a sewer or drain pipe. Most insurance companies offer an optional limited coverage for sewer and/or drain backup and sump pump failure and/or overflow. 

 

Boiler & Machinery Coverage. This is coverage for loss due to mechanical or electrical breakdown of nearly any type of equipment, including photocopiers and computers. Coverage applies to the cost to repair or replace the equipment and any other property damaged by the equipment breakdown. 

 

Law & Ordinance Coverage. This covers losses your business incurs due to the enforcement of building codes. It is important because building codes can significantly increase the cost of repairing or replacing a damaged building. These increased costs aren’t adequately covered under typical commercial property policies. (Coverage A: Value of undamaged portion of the building. Coverage B: Cost to demolish portion of undamaged building. Coverage C: Cost to bring both damaged and undamaged portions up to code.)

 

If you have any questions or would like to go over some of these overlooked coverages, please contact us and we would be happy to review your policy.

 

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