Business Insurance Terms
General Liability Insurance
Protection in the event of a claim from a person or entity contending that an occurrence arising out of the conduct of your business caused them some type of harm.
Workers Compensation
Workers compensation insurance is designed to cover the cost of medical care and a portion of lost wages due to a job-related illness or injury. Employer's liability is also included to help protect employers from potential legal action of an employee as a result of an injury. Maryland law requires that an employer provide Workers Compensation Insurance for its employees.
Property Insurance
This protection may include coverage for damage to buildings, fences, outdoor signs, etc. Loss of business income due to a covered loss is often an option that may be added to a Property policy.
Business Personal Property
Also known as "Contents Coverage," Business Personal Property coverage is part of a Property Policy and protects things like furniture, fixtures, equipment and stock of merchandise held for sale and other items used in or by the insured business. The typical Business Personal Property coverage provides protection for items located in the building or outside the building within 100 feet of the premises.
Inland Marine
Inland Marine insurance is most commonly used to cover property that leaves the insured's premises. Contractor's tools and equipment, store merchandise being delivered by truck and lap-top computers owned by the insured are examples of items that may be added to an Inland Marine Policy. Property of others in the custody of the insured, aka bailee coverage, may also be added to an Inland Marine Policy.
Business Auto
Insurance coverage for automobiles and trucks used for business purposes and typically (but not always) titled in the business name.
Commercial Umbrella
This is a single policy designed to add higher limits of liability above the limits of other policies including the General Liability, Business Auto liability and Workers Compensation.
Directors & Officers Liability
This coverage protects Directors and Corporate Officers against claims arising from "wrongful acts" such as alleged mismanagement resulting in loss of value of stock, unwise investment of corporate funds, improper payment of dividends, etc. The sources of such claims could be angry stockholders, unhappy clients, disgruntled employees or even government regulatory agencies.
Bonds
A bond is a promise by the bonding company (the surety) to pay a third party (the obligee ) a sum of money that the principal (the bonded person) becomes obligated to pay. There are number of types of bonds including but not limited to: License and Permit Bonds, Court Fiduciary Bonds, Judicial Bonds, Public Official Bonds, Contract Bonds, Performance Bonds and Bid Bonds.
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