INSURANCE NEWS & INSIGHTS

General Liability is one of the most common business insurance coverages. It may protect a business against certain claims arising from: Bodily Injury Example: a customer slips and falls at your business. Property Damage Example: your business accidentally damages someone else’s property. Products & Completed Operations Claims arising from products sold or qualifying completed work.…

There is no universal Illinois law requiring every business to carry General Liability insurance. However, it is frequently required by: Commercial landlords Property owners Customers General contractors Municipalities Licensing authorities Lenders Franchise agreements Vendor agreements A business may therefore be contractually required to carry General Liability even when there is no general statewide mandate.

A common business General Liability structure is: $1,000,000 Each Occurrence $2,000,000 General Aggregate $2,000,000 Products / Completed Operations Aggregate These are common market limits, not universal Illinois statutory requirements. A contract may require higher limits.

A Business Owners Policy, commonly called a BOP, combines several important business coverages into one policy. Depending on the insurer, a BOP may include: General Liability Protection against qualifying third-party liability claims. Business Personal Property Coverage for qualifying business-owned property such as: Furniture Computers Equipment Inventory Supplies Business Income May help replace qualifying lost income…

This is a common source of confusion. General Liability Only Primarily addresses liability exposures. BOP Typically combines General Liability with property-related coverages. For example: A business that rents an office and owns computers, furniture, equipment, and inventory may need more than General Liability. A BOP may provide protection for both liability and qualifying business property.

Business Personal Property generally means property owned by the business. Examples may include: Computers Office furniture Equipment Machinery Inventory Supplies Fixtures Certain tenant improvements General Liability usually does not function as insurance for your own business property. Businesses should make sure they understand whether their policy includes BPP coverage.

Businesses that own or lease commercial property may need Commercial Property insurance. Coverage may apply to: Buildings Business Personal Property Equipment Inventory Tenant improvements Certain outdoor property Business Income Coverage depends on the policy form. Businesses should not simply insure property according to purchase price. The insurance company may calculate building replacement cost based on…

One of the most overlooked business coverages is Business Income. Imagine a covered fire damages your business location and you cannot operate for several months. You may still have expenses such as: Payroll Rent Loan payments Utilities Taxes Certain ongoing operating costs Business Income coverage may help replace qualifying lost income and continuing expenses following…

Extra Expense coverage may help pay qualifying additional costs required to continue operating after a covered loss. Examples may include: Temporary office space Temporary equipment Moving expenses Emergency rentals Additional operating costs This coverage can be especially important for businesses that cannot afford to remain closed for long.

Workers’ Compensation premium is strongly influenced by: Payroll Type of work Classification codes Loss history Experience Modification State rates Company underwriting A simplified calculation may resemble: Payroll ÷ $100 × Classification Rate Different employees may have different classification codes. An office employee may have a very different rate from an employee performing physical or hazardous…