Commercial Insurance Checklist

Please use our checklist as a guide to review your insurance. You may want to print a copy and use this form to discuss your needs with your insurance advisor


Liability (click the specific coverage line for a brief definition of coverage)

Advertising and Personal Injury Liability

Advertising injury

Injury arising out of libel or slander, violation of the right to privacy, misappropriation of advertising ideas, or infringement of copyright, title or slogan committed in the course of advertising goods, products, or services.

Personal injury

Injury other than bodily injury arising out of false arrest or detention, malicious prosecution, wrongful entry or eviction, libel or slander, or violation of a person’s right to privacy committed other than in the course of advertising, publishing, broadcasting or telecasting.

How Much Do You Need?

At least $1,000,000/$2,000,000 and again high limits if your exposure warrants it or your lease or contract requires it.

Products and Completed Operations

A major general liability subline which provides coverage for an insured against claims arising out of products sold, manufactured, handled, or distributed, or operations which are complete. Claims are covered only after a product has been sold and possession relinquished, or operations have been completed or abandoned by the named insured.?? Manufacturers and contractors have a need for this coverage.

How much do you need?

A minimum of $1,000,000/$2,000,000 unless you feel your product has the possibility of doing more bodily injury in product/damage to your clients property or business. If this potential amount could be higher, then you should purchase higher limits.

Non-owned Hired Auto

Covers the insured for bodily injury and property damage losses where an employee (in their own car) has an accident and is on company business. Hired automobile provides liability coverage for an automobile, other than company owned, the employee leases, hires rents or borrows.

How much do you need?

At least the minimum limit you have selected for general liability insurance and maybe higher if you have employees using their automobile or renting cars for your business.

Employment Practices Liability

Liability insurance for employers that covers wrongful termination, discrimination, or sexual harassment toward the insured’s employees or former employees.

Liquor Liability

Coverage for bodily injury or property damage caused by an intoxicated person who was served liquor by the policyholder.

Professional Liability/Errors & Omissions

Covers professionals for negligence and errors or omissions that injure their clients.

Directors and Officers

Covers directors and officers of a company for negligent acts or omissions, and for misleading statements that result in suits against the company, often by shareholders. Directors and officers insurance policies usually contain two coverages: personal coverage for individual directors and officers who are not indemnified by the corporation for their legal expenses or judgments against them – some corporations are not required by their corporate or state charters to provide indemnification; and corporate reimbursement coverage for indemnifying directors and officers. Entity coverage for claims made specifically against the company may also be available.

Umbrella Liability

Coverage for losses above the limit of an underlying policy or policies such as homeowners and auto insurance. While it applies to losses over the dollar amount in the underlying policies, terms of coverage are sometimes broader than those of underlying policies.

Property Coverage (click the specific coverage line for a brief definition of coverage)

Business Personal Property

Traditionally known as ”contents,” this term actually refers to furniture, fixtures, equipment, machinery, merchandise, materials, and all other personal property owned by the insured and used in the insured’s business.

How Much Do You Need?

You need to calculate the replacement value of all your business personal property ie (furniture fixtures inventory telephone system fax machine etc.) also the replacement value of all the tenant improvement & betterment you have built into your leased premises. You should increase this amount to the actual replacement value of the property.

Computers and Media

Includes computers, peripheral devices, purchased software and other software, media, data in memory, and hardware and software manuals.

Peripheral device means any physical unit used to operate the computer that cannot be used for purposes other than as part of the computer system such as tape or disk drives, printers or modems.

How Much Do You Need?

Determine the current replacement value of your computer hardware and also the replacement value of your software & media. If it is greater than the blanket offered in the base policy, you should increase the actual replacement value.

Property of Others

The coverage will pay on a replacement cost basis for direct physical loss or damage by a covered cause of loss to personal property of others that is in your care, custody, and control.

How Much Do You Need?

Review your total personal property that you have in your care custody and control and purchase the appropriate limit to insure that property.

Valuable Papers

Are documents, manuscripts or records including abstracts, books, deeds, drawings, films, maps, or mortgages. It does not mean converted data, money and securities, or programs or instructions used in your data processing operations. Including the material which the data was recorded.

How Much Do You Need?

Determine the value of your valuable paper and records, such as documents, manuscripts, records, drawings, films, maps etc. This coverage would pay for the value of the above documents & their cost to replace.

Business Income/Extra Expense

Commercial coverage that reimburses a business owner for lost profits and continuing fixed expenses during the time that a business must stay closed while the premises are being restored because of physical damage from a covered peril, such as a fire. Business interruption insurance also may cover financial losses that may occur if civil authorities limit access to an area after a disaster and their actions prevent customers from reaching the business premises. Depending on the policy, civil authorities coverage may start after a waiting period and last for two or more weeks.

Employee Dishonesty

Covers direct losses and damage to businesses resulting from the dishonest acts of employees.

Accounts Receivable

Covers the amount due from your customers that you are unable to collect due to direct physical loss or damage to your records of accounts receivable and other reasonable expenses that you incur to reestablish your records of accounts receivable.

How much do you need?

Calculate your cost to replicate your accounts receivable records and add an estimate of what you might be unable to collect because of lost records


Coverage for flood damage is available from the federal government under the National Flood Insurance Program but is sold by licensed insurance agents. Flood coverage is excluded under homeowners policies and many commercial property policies. However, flood damage is covered under the comprehensive portion of an auto insurance policy

Employee Benefits(click the specific coverage line for a brief definition of coverage)

Workers Compensation (Required by Law)

Insurance that pays for medical care and physical rehabilitation of injured workers and helps to replace lost wages while they are unable to work. State laws, which vary significantly, govern the amount of benefits paid and other compensation provisions.

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