Common Types

Accounts Receivable Insurance can be particularly useful for new or rapidly growing businesses that cannot afford to do credit checks on every client. For a relatively low fee, Accounts Receivable Insurance protects a company against loss on receivables – including default and bankruptcy. This insurance can also protect a company which is unable to collect receivables, due to loss of the underlying records (for example: records lost in a fire).

Builders Risk Insurance

This type of insurance helps protect against loss to buildings or structures during the course of construction – including materials incidental to construction. Both general contractors and individual builders can benefit from Builders Risk Insurance.

Business Auto and or Fleet Coverage

This insurance may include vehicles owned or leased by the company, hired by the company, or employee-owned vehicles used for business purposes. It is recommended that a company obtain a Business Auto / Fleet policy, even if it does not own vehicles but its employees use personal vehicles for business purposes. In the event of a serious accident, the employee may not have enough personal liability coverage to adequately protect the business.

Business Income Insurance

This policy covers a company’s loss of income due to a slowdown or temporary suspension of its normal operations stemming from damage to its physical property. Business Income Insurance coverage typically includes the loss of income, minus the normal operating expenses. Coverage applies during the time required to repair or replace damaged property. The policy may also cover the loss of rental income.

Business Owner Policies (BOP)

This type of insurance often includes: Property Insurance, Business Income Insurance, Crime Insurance, Vehicle Coverage, Liability Insurance and Flood Insurance in a packaged policy. The company can also make arrangements to have additional perils added to the original package.

Commercial General Liability (CGL)

This is a standard insurance policy that protects businesses against liability claims for bodily injury and property damage arising out of premises, operations, products, and completed operations,as well as advertising and personal injury liability.

Commercial Package Insurance

This kind of insurance provides coverage for more than one peril. For example: a policy that includes coverages for both Liability and Property for businesses and other organizations. It is similar to a BOP but, a Commercial package does not have to be a “total” package. Commercial Package Insurance is often discounted for multiple lines of coverages.

Commercial Property Insurance

Commercial Property Insurance covers everything related to the loss and damage of company property, due to a variety of events. It can include fire, smoke, wind and hailstorms, civil disobedience and vandalism. The definition of “property” is broad, and can include loss of income, business interruptions, computers, company papers and money.

There are two basic forms:

  • All-Risk policies cover a wide-range of incidents and perils, with the exception of those noted in the policy.
  • Peril-Specific policies cover only losses caused by those perils listed in the policy. Examples of Peril-Specific policies include Fire, Flood, Crime and Business Interruption coverages.

All-Risk generally cover risks faced by the average small business, while Peril-Specific policies are usually purchased when there is high risk of peril in a certain area.

Commercial Umbrellas

Commercial Umbrella Insurance provides protection against catastrophic losses. They are generally written over various primary liability policies, such as the Business Auto policy, Commercial General Liability policy, Watercraft and Aircraft Liability policies, and Employer’s Liability coverage. The Umbrella policy provides excess limits when the limits of underlying liability policies are exhausted by the payment of claims; it drops down and picks up where the underlying policy leaves off when the aggregate limit of the underlying policy in question is exhausted by the payment of claims; and it provides protection against some claims not covered by the underlying policies, subject to the assumption, by the named insured, of a self-insured retention.

Crime Insurance

It’s a policy that companies purchase to ensure protection from losses resulting from business-related crime.  Coverage can cover merchandise, money or other property loss when a company is victimized by someone perpetrating embezzlement, forgery, robbery, securities theft or another form of business-related crime. Business owners should keep in mind that most commercial property policies may not or do not cover crime-related losses.  Companies can invest in business crime insurance either as part of a larger insurance package (typically known as special multiperil insurance or a commercial package policy), or they can purchase separate, standalone policies to address and provide coverage for specific types of crime. 

Directors and Officers Liability Insurance (D&O)

This provides financial protection for the directors and officers of your company in the event they are sued in conjunction with the performance of their duties as they relate to the company. Think of Directors and Officers Insurance as a management Errors and Omissions policy. Directors & Officers Liability Insurance may sometimes include Employment Practices Liability Insurance and Fiduciary Liability.

Electronic Data Processing (Cyber) Insurance

This type of insurance is often under looked but it extremely important in a day of computer piracy and other losses to data. With concerns about privacy, identity theft and general network security liability for sensitive information stored by a company; any company that performs daily tasks on a computer may be exploited by criminals, including ones that you may not know work for you.

Who is at risk and need Electronic Data Processing Insurance?

Any business that keeps patient information, credit card information, employee information, uses e-mail, relies on a network, has a website, generates money online, uses a network to control production, manufacturing, inventory or supply, etc. In-short, if you use a computer for your business, you have an exposure.

Employment Practices Liability Insurance (EPLI)

This provides coverage for wrongful acts arising from the employment process. Frequent types of claims alleged under such policies are: wrongful termination, discrimination, and sexual harassment. Policies are generally written on a claims-made basis and exclude large-scale, companywide layoffs. EPLI can be a stand-alone policy and is frequently available as an endorsement to D&O and sometimes as an endorsement to a BOP.

The amount of lawsuits filed by employees against their employers has skyrocketed and no company is immune to such lawsuits. Most businesses need EPLI coverage to defend against claims made by workers that their legal rights as employees of the company have been violated.

Some things that EPLI provides protection for are:

  • Sexual harassment
  • Discrimination
  • Wrongful termination
  • Breach of employment contract
  • Negligent evaluation
  • Failure to employ or promote
  • Wrongful discipline
  • Deprivation of career opportunity
  • Wrongful infliction of emotional distress
  • Mismanagement of employee benefit plans

The cost of EPLI coverage depends on your type of business, the number of employees you have and various risk factors such as whether your company has been sued over employment practices in the past. The policy covers legal costs, whether your company wins or loses the suit. Policies also typically do not pay for punitive damages or civil or criminal fines.

Some steps to take to help protect your business from EPLI claims:

  • Educate your managers and employees.
  • Create written and effective hiring and screening programs to avoid discrimination.
  • Post corporate policies throughout the workplace and place them in employee handbooks so policies are clear to everyone.
  • Train your employees about sexual harassment and/or discrimination.
  • Make sure management and employees know where the company stands on what behaviors are not permissible.
  • Document everything that occurs and the steps your company is taking to prevent and solve employee disputes.
  • Make sure every employee received and acknowledges (in writing) they have read it.

Equipment Breakdown Insurance

It covers for losses due to mechanical or electrical breakdown of nearly any type of equipment, including photocopiers and computers. Coverage applies to the cost to repair or replace the equipment and any other property damaged by the equipment breakdown. Business income and extra expense loss is often covered as well. Equipment breakdown policies typically provide slightly broader coverage than traditional boiler and machinery policies, and they usually do not use the specialized terminology found in traditional boiler and machinery policies.

Equipment Floater Insurance

This covers equipment that is often moved from place to place. A form of inland marine insurance.

Garage Insurance

It provides coverage to owners of storage garages, parking lots, body and repair shops, etc., for liability as bailees with respect to damage to automobiles left in their custody for safekeeping or repair. Coverage is contingent on establishing liability on the part of the insured.

Dealers Insurance

It covers a dealer’s fleet of vehicles with a dealer open lot policy. Protect fleet against weather and theft. 

Inland Marine Insurance

It is a type of property insurance designed to insure exposures that cannot be conveniently or reasonably confined to a fixed location. Inland marine includes coverage for property in transit over land, certain moveable property, property under construction, instrumentalities of transportation and communication (such as bridges, roads, piers, and television and radio towers), legal liability coverage for the bailees, and computerized equipment. Most coverage is without regard to the location of the covered property; these are sometimes called “floater” policies. Inland marine coverage is generally broader than property coverage forms due to the relative freedom from rate and form regulation of inland marine insurance as compared with property insurance.

Liquor Liability Insurance

It is business insurance that protects your business against loss or damages claimed as a result of a patron of your business becoming intoxicated and injuring themselves or others. If your business manufactures, sells, serves, or facilitates the uses or purchase of alcohol, then your business needs this coverage.

Liquor liability coverage may sometimes be sold as an endorsement to a commercial liability policy or as a separate liability policy. Standard liability policy DO NOT protect your business against these kind of claims.

Things you should know:

  • Most claims against bars and restaurants are the results of fights. You should make sure your liquor liability policy includes coverage for assault and battery claims.
  • One of the biggest costs facing your business in these types of claims is the cost of retaining a lawyer against frivolous claims. Make sure “defense costs” are not deducted from the total coverage.
  • If possible, make sure employees are covered as patrons.
  • Claimants sometime allege that damages are in non-physical ways: stress, mental anguish, or psychological damage. Some policies exclude these types of damages. Don’t purchase a policy with limited damage definitions.
  • Most insurers will offer free classes and training to their insured’s employees and discounts on premiums for having safety training and no claim history. Some insurers will reduce premiums by 15-20% for this basic safety training.
  • Liquor liability insurance WILL NOT cover sales that are contrary to law and sales to minors.Contact us for more information or a Liquor Liability Insurance consultation and quote today!

Ocean Marine Insurance

 This covers the “warehouse to warehouse” transportation of goods and/or merchandise by vessels crossing both foreign and domestic waters (including any inland or aviation transit associated with the shipment). This type insurance also provides coverage for damage to the vessels involved in shipments and any legal liability arising in the course of shipment.

Pollution Insurance

It is a specialized insurance policy that covers liability and sometimes cleanup costs associated with pollution. Liability from pollution is normally excluded to some degree by the general, auto, and umbrella liability policies. In recent years, insurers have attempted to introduce strict exclusionary language into these policies, making it necessary for insured to seek coverage under separate policy.

Professional Liability Insurance (also know as E&O)

This coverage is designed to protect traditional professionals (e.g., physicians) and quasi-professionals (e.g., real estate brokers) against liability incurred as a result of errors and omissions in performing professional services. Although there are a few exceptions, most professional liability policies cover economic losses suffered by third parties, as opposed to bodily injury and property damage (which is typically covered under commercial general liability policies). The vast majority of professional liability policies are written with claims-made coverage triggers.

Special or Surplus Line Insurance

If you have a “hard to place” risk, we are able to shop many companies world-wide that specialize in insurance that is unique and that standard carriers will not write. Even if you think it is not possible, give us a chance to make the impossible, possible.

Transportation Liability Insurance (Motor Truck Cargo)

It is intended to provide legal liability coverage for truckers (common or contract carriers) while they are transporting property of others (cargo). The trucker is liable for cargo under the terms of a bill of lading (common/public) or a contract with the shipper (contracted).

Truckers Insurance

It is a commercial auto policy designed to address the needs of the “for-hire” motor carrier (i.e., trucking) industry. Coverage available includes auto liability, trailer interchange, and auto physical damage; other coverage is available by endorsement.

Workers’ Compensation

Zero Down Payment, Pay-as-you-go, Flat and/or Sliding Dividends for most Workers’ Compensation class codes!

This is extremely important to a business that has any employees! Even though Florida law does not require all businesses to have workers’ compensation; we highly recommend that you have a workers’ compensation policy if you have employees.

Workers’ compensation is relatively inexpensive for the most part when you consider the cost of medical treatments, therapy and lost wages that the employer will be liable for should an employee be injured by a trip and fall, by cutting themselves, a fall from a ladder or get injured in a car accident while on company business for example.

Consider a few of these claims we have seen in the past and other issues that can arise from not having coverage:

  • Fall from loading dock (Sprained wrist, contusion to back, fractured ankle & lost wages): $142,436.11
  • Employee tripped on a door threshold while moving boxes (Ankle injury & lost wages): $9,621.69
  • Tac in finger that became infected: $915.18
  • Salesman stepped on item that punctured foot while making sales calls: $1,510.74
  • Delivery driver injured in car accident: $375,000 and still open claim
  • Stop work order issued to employer for not complying with Florida law when workers’ compensation was required. (Div. or Work Comp can and does inspect businesses w/o notice in addition to tips from employees and your competition.)
  • BIG fines from the State of Florida (1.5 times the amount the employer would have paid in premium within the preceding three-year period).
  • Money out of your pocket to defend against fraudulent claims.

Workers’ Compensation is not a sign and forget policy as it is treated by many agents. MBIFS proactively helps you monitor risk, implements safety and drug-free programs and policies, manages your certificates and endorsements and reviews your cost exposure to eliminate unexpected audits throughout the year to help protect our client’s interests and needs.

MBIFS works almost exclusively with AMBest “A-” or better rated insurance companies and, most of our carriers requiring only the $200.00 state expense constant to start coverage with pay-as-you-go, 10-pay, 9-pay, 4-pay, 2-pay or single pay options depending on our clients needs.

Disclosure: The information below is meant to explain coverage types in “plain English”. This information is provided only as a reference, is not advise (legal or otherwise) and does not guaranteed accurate or as an offer of insurance. Over time, the above items and descriptions may change as do policy types. Please review you policy forms, applications, declaration page and policy for coverage. Most importantly, speak with your agent regarding questions to your specific coverage.