Commercial Insurance Comparisons

BOP bundles GL with property and business income, for shops/restaurants/offices. GL alone covers third-party claims only. Side-by-side.

GL covers third-party injury and property damage. Pro Liability covers claims your work caused financial loss. Most service businesses need both.

An LLC limits personal liability but does not replace business insurance. Sole proprietors need more coverage, not less. Here's the trade-off.

Cyber covers data breaches, ransomware, outages. Pro Liability covers professional mistakes. Many service businesses need both, not either.

Occurrence covers incidents that HAPPENED in the policy period. Claims-Made covers claims FILED in the policy period. Different trigger, different gaps.

Hired Auto covers rentals your business pays for. Non-Owned Auto covers personal cars employees drive on business. Most need both — bundled as HNOA.

State funds (CA SCIF, NY SIF) compete with private WC carriers. State funds often write hard-to-place risks; private may offer better service.

BOP is a prepackaged bundle for small businesses. CPP is customizable for mid-large operations. Eligibility caps + customization are the trade-off.

Additional Insured = limited liability for one party. Additional Named Insured = full policy rights. Contracts often confuse the two.

Excess sits over one policy and follows its form. Umbrella drops down across multiple GL/Auto/EL policies and may close gaps. They are not the same.

Per Occurrence is the max a GL policy pays for one claim. Aggregate is the policy-year cap across all claims. Both apply on every GL declaration page.

Personal auto excludes business use. Drive for work? You likely need commercial auto, hired auto, or non-owned auto. Personal alone leaves a gap.

Surety bonds guarantee performance to a third party. Fidelity bonds insure YOU against employee theft. They are different products, contracted vs covered.

Replacement Cost pays to rebuild new. Actual Cash Value pays depreciated value. ACV is cheaper upfront but 30-50% less at claim time for aged property.

Commercial Property covers buildings + contents at a fixed address. Inland Marine covers movable property in transit and on job sites.

Crime Insurance covers employee dishonesty + third-party crime. Fidelity Bonds are legacy, narrower coverage. Modern policies default to Crime.

Special Form is open-peril: covers everything not excluded. Basic and Broad Forms are named-peril. Choice drives premium and risk.

EPLI covers employment claims (harassment, discrimination, wrongful term). D&O covers director/officer decisions. Both often needed.

Bid bonds guarantee contract acceptance. Performance bonds guarantee completion. Payment bonds guarantee sub-payment. All three on most public jobs.

In monopolistic states (OH/WA/ND/WY) state-fund WC lacks Employer Liability. Stop-Gap Coverage fills the gap. Without it, employee lawsuits are uncovered.

Workers Comp is required in 49 states (Texas opt-in). Occupational Accident is private coverage for 1099 contractors, opt-outs, and gig workers. Compared.

BOP bundles GL, property, and business income. Workers Comp pays employee injury benefits. Most small businesses with W-2 employees need BOTH.

Personal Umbrella sits over home and auto. Commercial Umbrella sits over business policies (GL, Commercial Auto). NOT interchangeable.

Garage Keepers covers customer vehicles in your storage yard. On-Hook covers a vehicle IN TRANSIT on your hook. Commercial Auto covers NEITHER.

TNC (Uber/Lyft) uses per-period coverage. Livery (limo/taxi/black car) uses state PUC framework. Two distinct regimes for for-hire transportation.

Monoline = each coverage bought standalone. Package = bundle multiple lines (BOP, CPP) at 10-25% discount. The default decision most miss.

1099 vs W-2 classification triggers different insurance requirements (Workers Comp, GL, HNOA). Misclassification risks DOL audit and IRS penalties.

CPL covers pollution from your OPERATIONS at customer sites. EIL covers pollution from YOUR OWN site and regulatory cleanup. Standard GL excludes both.

Mobile and booth-renting professionals are NOT covered by the salon's BOP, even if the owner says so. Standalone coverage required.

LDW = broadest (theft and loss). CDW = collision damage only. SLI = third-party liability above state minimum. Three different rental-car waivers.

Both within Coverage A products-completed-operations hazard of ISO CGL. Product Liability = defective product. Completed Ops = finished work after leaving.

Additional Insured adds a party as defendant under LIABILITY. Loss Payee directs PROPERTY proceeds to a lender/lessor. Different forms and triggers.

D&O covers directors/officers acts in corporate capacity. Fiduciary Liability covers ERISA breach in benefit-plan administration. NOT interchangeable.

TAIL covers claims reported after your claims-made policy ends. PRIOR ACTS extends retroactive date on the new carrier. Not interchangeable.

Med Pay (CGL Coverage C) is no-fault $1K-$5K. BI Liability (Coverage A) is fault-based $1M-$2M. Two distinct claim mechanisms operators conflate.

Waiver of Subrogation = your carrier waives pursuit of the named party. Additional Insured = named party becomes insured with defense and indemnity.