Two types of coverage are included in a business owner’s policy. The property coverage is the first section of the policy. The policy’s property coverage typically covers business personal property like tables, chairs and fax machines. It also protects software, computers, plotters, plotters, plotters, and other equipment. This policy is written on a cost-per-replacement basis.
The second section of the bop is known as general liability (or GL). Although it is commonly referred to by many firms as “slip & fall insurance”, it actually covers more than that. It covers bodily injuries and property damage in the workplace or at job sites. The GL also covers personal, product, and finished operations injuries. You can also get non-owned or hired auto liability coverage for rented and borrowed vehicles, and additional coverage for employees’ personal auto coverage when they use their personal vehicle for business purposes.
Many coverages are available under the policy for business owners that covers the A/E insured. Here are a few.
- Protection for valuable papers: This coverage is typically around $100,000, but can be increased. This coverage protects the insured’s valuable time. This covers the cost to re-create architectural and engineering drawings, sketches, specs & blueprints if they are destroyed or damaged by a covered loss. Most often, flood and earthquake are covered.
- Fine arts: Why fine arts?Some A/E policies have included architectural models in the definition of fine arts. This coverage is available anywhere in the area covered. An amount must be stated. The cost of coverage starts at $25,000, but you can increase it at no extra cost.
- Equipment for contractors: Surveyors and engineers have a lot of equipment. It is vital to include these items on your business owner’s insurance due to the high cost of GPS and surveying equipment. Some carriers offer replacement cost coverage regardless if the equipment is older. Data stored on equipment is also covered. Insurance companies also offer coverage for property that is under the insured’s custody, control, or care. Waterborne equipment coverage can be extended by some insurance companies starting at $10,000.
- Computer coverage: This covers your media and computers. You can get coverage for electronic vandalism and in transit. Coverage can also be provided for physical loss of data or media on and off premises. Worldwide coverage for laptops is available.
A/E companies enter into numerous contracts that require specific coverage wording. A/E business owners have included these words and coverages in their policies under general liability and special endorsements. These are the most popular.
- Blanket additional insured coverage is offered to an organization or person when it is agreed to by written contract. It covers liability for bodily injury, property damages, and personal injury caused in whole or in part by the named insured acts, omissions, or acts of others acting on your behalf.
- If the parties agree in writing, the insurance policy of architects/engineers will be primary and noncontributory. The insurance company will not accept any contribution from other carriers.
- Waiver or subrogation-This means that an insurance carrier will not recover against an individual or organization if an architect or engineer waived their rights to recovery under a contract or agreement before the injury or damage.
- A per project aggregate-a per policy aggregate refers to the maximum amount the insurer will pay for all claims in a policy period. It is usually $2,000,000 Per project aggregate: The insurer will pay the exact $2,000,000 for any claims that are related to any one project. This greatly increases the potential amount that the carrier could pay over the term of the policy.
Every A/E carrier offers different coverages and each one is not the same. This is why it’s important to discuss your needs with the insured to determine the best coverage and company to fit their needs.