How to read your business insurance policy
What the parts of a business insurance policy mean, so you know what your own document says before you talk to your insurer, agent, or attorney.
A business owners policy can combine general liability and commercial property coverage in one policy. General liability has a per-occurrence limit for one covered event and an aggregate limit for covered events during the policy period.
Commercial property coverage can list separate limits for the building and for business personal property such as equipment, inventory, and supplies. A coinsurance condition can reduce a payment when the insured value is below the percentage stated in the policy.
Workers compensation coverage addresses benefits required by law for a covered work-related employee injury or illness. Employers liability lists separate limits for certain employee injury or illness lawsuits outside those benefits.
The parts to find on a business insurance policy
- Building coverage
- Commercial property coverage for the insured building, up to the limit shown in the policy.
- Business personal property
- Commercial property coverage for items the business owns or uses, such as furniture, equipment, inventory, and supplies.
- Coinsurance
- A commercial property condition that can reduce a payment when the insured value is below the percentage stated in the policy.
- Employers liability
- Coverage for certain employee injury or illness lawsuits that fall outside workers compensation benefits, subject to stated limits.
- General liability aggregate limit
- The most the policy will pay for covered general liability during the policy period, even when more than one occurrence takes place.
- General liability per-occurrence limit
- The most the policy will pay for covered general liability arising from one occurrence, subject to the policy terms and aggregate limit.
- Workers compensation
- Coverage for benefits required by law when an employee has a covered work-related injury or illness.
What UnderstandMyPolicy shows you
Upload your own business insurance policy and it reads the document and explains what it says, with every answer cited to the page and clause. It reports what a policy states, not whether the coverage is enough. That is a conversation for the policyholder and a licensed agent or attorney.