We’ve put together a list of some insurance language to help you when reading your policy documents.
Commercial Auto Insurance
Direct Compensation – Property Damage (DCPD)
This covers loss or damage to your vehicle for accidents where you were deemed ‘not at-fault’. This means that even though another party caused the accident, your insurance company covers the claim.
Commercial Vehicle
This means a vehicle used in the course of business, even if it’s a personal vehicle. The usual types of commercial vehicles are trucks and buses over 4,500 kilograms, part of a fleet or ones that carry paying passengers.
Class of Vehicle
Commercial vehicles are categorized into a vehicle class based on the type, size, weight and intended use to be able to determine the coverages required and corresponding insurance premium. Some common examples are light commercial, heavy duty, fleet and passenger-carrying.
Accident Benefits
Sometimes confused as coverage available only in personal automobile policies, this provides medical and income-related benefits if you or your employees are injured in an accident while doing business, regardless of who is at-fault.
Non-owned Auto Liability
This coverage protects you from liability for injury or property damage caused by employees, contractors or volunteers while using their vehicle to do work related to your business.
Commercial Property Insurance
Cargo – Transit Coverage
This provides protection for goods while being transported from one location to another, whether by land, sea or air.
Betterments and Improvements
This refers to the changes your business made to the leased commercial space such as built-in cabinetry, flooring, lighting and more. If these items are damaged in an insured event, these will be covered under the property policy.
Business Interruption
Also called Business Income, this coverage is typically included in a property policy that protects your business if your operations are disrupted due to an insured event. It helps pay for lost income and operating expenses such as rent, taxes and payroll while your operations are fully or partially shut down.
Water Damage
This is defined as damage to your property caused by the sudden or accidental escape of water such as a burst pipe, an overflow from an appliance or a water main break.
Commercial Liability Insurance
Tenant’s Legal Liability
This coverage is part of a Commercial General Liability policy that helps pay for legal costs and damages if you or your employees accidentally damage leased property. This refers to a leased physical space such as an office, store or warehouse.
Completed Operations
Product Liability
This coverage is part of a Commercial General Liability policy that helps pay for damages and legal costs if the products you manufacture, distribute or sell unintentionally cause harm to others. This could be from a design flaw, manufacturing defect, or inadequate product warning or labeling.
This coverage is important for businesses that have employees because it provides protection for work-related injury or illnesses. It helps pay for legal costs and damages if your business is found negligent in causing the employee’s illness or injury.
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The content on this page is for information only. The insurance products described are subject to terms, conditions, limitations and exclusions that are outlined in the policy wording. Please refer to the policy wording for complete details.