As a professional, your greatest exposure to loss may be the unintentional actions or allegations that you did not complete your duties to a clients’ expectations.
You can ensure you’re covered against this risk with a custom insurance policy.
Common coverages for Professional Services
Business interruption insurance
Business Interruption Insurance compensates you for your lost income while your business is closed due to an insured direct physical loss. It replaces your loss of income or profits until you’re back up and operating again.
Typically, Business Interruption Insurance coverages would include:
Extra Expense Coverage:
This form of coverage insurers against payment of additional expenses while operating in temporary quarters due to damage to buildings or contents by an insured peril.
Gross Earnings Coverage:
A form of insurance which covers the reduction of gross earnings (total net sales less the cost of goods sold) during the period that a business is shut down following damage by an insured peril. Coverage however, only applies until the doors open again for business.
This form of coverage continues until the organization profits have returned to the same position as they were prior to the loss occurring subject to an indemnity period which is usually 12 months.
Rental Income Coverage for Landlords:
A form of business interruption insurance designed for landlords to cover the loss of rents when leased property is made uninhabitable due to damage by an insured peril.
Commercial General, Umbrella Excessive Liability
Commercial General Liability Insurance is a standard and common insurance policy issued to businesses and organizations to protect them against liability claims.
Commercial General Liability or CGL insurance protects you and your business against claims for bodily or personal injuries, advertising liability, as well as property damage to third parties arising from your operations or products or occurring on your business premises. In the event you are sued for any claims arising out of the above, this protection would cover the legal costs to defend the claim against your business in court, as well as indemnity costs to cover damages to compensate third parties.
The typical CGL Insurance policy contains numerous types of coverage including:
- Bodily injury
- Property damage
- Products liability
- Current and completed operations
Commercial Property Insurance
Commercial Property Insurance protects you against loss or damage such as a fire, theft, vandalism and more. This important protection covers the physical assets of your business inside and out, including buildings, inventory, electronics and equipment, as well as exterior fixtures.
Equipment Breakdown Coverage
Equipment such as pressure vessels and boilers require special attention. Most commercial property policies do not provide coverage for breakdown to these types of equipment, or to other business-critical electrical systems. This is why Equipment Breakdown Coverage is important – it’s designed to complement Commercial Property Insurance, offering protection against damages to mechanical, electrical, pressure and electronic equipment and other business property. In addition, this coverage can provide protection for business interruption / loss of revenue as a result of breakdown.
Whether you own a building or rent space in one, Equipment Breakdown insurance is essential for every business owner who:
- Occupies a building that uses electricity, heat or air conditioning
- Uses electronic equipment such as computers or a telephone system
- Runs a manufacturing business
- Uses hot water or steam
Errors & Omissions Insurance
Errors and omissions coverage protects your business against human errors that cause financial losses to others. Your professional liability coverage also protects your business against claims due to inactions or oversights.
Because professional liability insurance is tailored to professionals in each industry, this coverage isn’t available as a home insurance endorsement or as part of a business owners’ policy. Instead, it’s offered as a standalone policy that can be paired with other key coverages as part of a well-planned risk-management strategy.
- Fidelity Bonds
- Crime & Employee Dishonest