Commercial Property Insurance Classification

Commercial Property Insurance Classification: 

Air Conditioning, Heating, and Refrigeration Dealers

Aircraft – stored in the open

Aircraft Parts and Accessories Dealers.

Airline Passenger Terminals

Airplane Hangars – no repairing

Airplane Hangars – with repairing

Amusement Equipment – outside

Amusement Parks – recreational buildings

Anhydrous Ammonia Dist.

Antique Shops

Apartment Hotels – no restaurant

Apartment Hotels – with restaurant

Apartment Mercantile


Apartments – condominiums

Apartments – garden

Appliance Sales – not televisions, radios, or phonographs

Appliance Sales – sewing machines

Appliance Sales – televisions, radios, or phonographs

Appliance Service – not televisions, radios, or phonographs

Appliance Service – sewing machines

Appliance Service – televisions, radios, or phonographs

Archery Ranges – recreational buildings


Army and Navy Stores

Army Post Exchanges

Art Galleries – not commercial

Art Galleries – sales

Art Studios

Art Supply Stores


Athletic Equipment and Sporting Goods Stores – retail

Athletic Equipment and Sporting Goods Stores – wholesale

Auction Galleries – furniture

Auction Galleries – not furniture

Auditoriums – no scenery

Auditoriums – with scenery

Automobile Body Repair Shops

Automobile Car Washes

Automobile Garages – parking or storage

Automobile Glass Shops

Automobile Paint Shops

Automobile Part or Accessory Stores

Automobile Repair Shops

Automobile Sales – no service

Automobile Sales – office only

Automobile Sales and Service

Automobile Salvage – wrecking stores

Automobile Salvage – wrecking yards

Automobile Seat Cover or Top Shops

Automobile Service Stations Automobile Tires – see tires

Automobile Washes

Bakeries – retail – no baking

Bakeries – retail with baking

Bakeries – wholesale – no baking


Barber and Beauty Supply Stores

Barber Shops

Bars – no cooking

Bars – with cooking

Baseball Parks – grand stands or bleachers

Baseball Parks – recreational buildings



Beauty and Barber Supply Stores

Beauty Parlors

Bedspread or Blanket Stores – retail

Bedspread or Blanket Stores – wholesale

Beer Stores

Beverage Stores – non-alcoholic

Bicycle Rental

Bicycle Service

Bicycle Stores


Billiard or Pool Halls

Blanket or Bedspread Stores – retail

Blanket or Bedspread Stores – wholesale

Bleachers – outside

Blood Banks

Boarding Houses

Boat Dlrs. – no repairs

Boat Docks

Boat Repair Shops

Boat Storage – buildings

Boat Storage – yards

Book Stores – second hand

Book, Magazine, and Stationary Stores

Booths – exhibit – outside

Bowling Alleys


Builders’ Risks

Building and Loan Assn. Offices

Building Material Dlrs. – not second hand

Building Material Dlrs. – stores – second hand

Building Materials Dlrs. – yards – second hand

Bus Stations or Terminals


Camera Stores

Camps – all buildings except dwellings

Candy Stores – no food served

Car Washes

Carpet or Rug Cleaners

Carpet or Rug Stores


Caves – recreational

Cemeteries – all buildings except dwellings

Cemeteries – tombstones

Chemical Laboratories

Children and Infants Clothing Stores

China and Glassware Stores

Churches and Synagogues – including auxiliary buildings, except dwellings, habitational, or schools

Cleaners and Dyers Plants

Cleaners and Dyers Receiving Stations

Clinics, Dispensaries, and Infirmaries – offices only

Clinics, Dispensaries, and Infirmaries – other than offices

Clothing Stores – children and infants

Clothing Stores – men and boys 14 years or older

Clothing Stores – other

Clothing Stores – see Army and Navy, Department, Discount, Furs, Millinery, Mens Haberdashery, Neckties, Shoes, and Womens Specialty.

Clothing Stores – women and girls 14 years or older

Clubs – country, golf, polo, tennis – no cooking

Clubs – country, golf, polo, tennis – with cooking

Clubs – health

Clubs – lodges, fraternal

Clubs – riding

Clubs – swimming

Coal Yards

Coal, Fuel, Oil, Wood, or Ice Dlrs.

Coffee Stores

Coin or Stamp Stores

Cold Storage Plants – lockers

Concessions – check room, etc.

Condominiums – apartments

Condominiums – apartments –

Confectionary Stores – food served, no cooking

Confectionary Stores – no food served

Confectionary Stores – with cooking

Contractors – Construction and Maintenance –

Contractors – construction and maintenance – offices

Convalescent or Nursing Homes

Convention Buildings


Copy and Duplicating Services

Cosmetics Dlrs. – wholesale

Cosmetics Stores – retail

Cotton Compresses

Cotton Merchants

Cotton Storage Warehouses – baled


Currency Exchanges

Dairy Product Stores – food served, no cooking

Dairy Product Stores – no food served

Dairy Product Stores – with cooking

Dance Halls

Day Nurseries

Dealers – see store listings

Delicatessens – no cooking

Delicatessens – with cooking

Dental Laboratories

Department Stores

Diaper Service Laundries

Discount Stores

Dog Kennels

Door, Window, and Millwork Dlrs.



Dressmaking Shops

Drug Stores – retail

Drug Stores – wholesale

Dry Cleaners – plants

Dry Cleaners – receiving stations

Dry Goods Stores – retail

Dry Goods Stores – wholesale


Electric Power Co.

Electronic Data Processing Centers

Engine Repair – small engine

Engraving – not photo engraving

Equipment and Fixtures Dlrs. – store, office, restaurant, hotel, or bar

Equipment Rental Dlrs. – no television

Equipment Rental Dlrs. – with television

Equipment, Furniture, and Fixtures Dlrs. – store, office, restaurant, hotel, or bar

Exercise Studios

Exhibition Buildings

Exterminators or Fumigators – office

Exterminators or Fumigators – other

Fabric Stores – retail

Fabric Stores – wholesale

Fair Grounds – buildings

Fair Grounds – stands and booths

Farm Machinery and Equipment Sales

Farm Tractor Sales – with repairing

Farm Tractor Sales – without repairing

Feed, Hay, and Grain Stores

Fire Extinguisher Service

Fire Stations

Five and Ten Cent Stores

Fixtures and Equipment Dlrs. – store, office, restaurant, hotel, and bar

Fixtures, Furniture, and Equipment Dlrs. – store, office, restaurant, hotel, and bar

Florists – greenhouses – including boiler rooms and sheds

Florists – shops – retail

Florists – wholesale

Fraternity Houses

Freight Terminals – no explosives

Freight Terminals – with explosives

Frozen Food Dlrs. – meat, fish, or poultry

Frozen Food Dlrs. – not meat, fish, or poultry

Fruit or Vegetable Stores – retail

Fruit or Vegetable Stores – wholesale

Fuel Oil, Gasoline, or Kerosene Dlrs.

Fumigators or Exterminators – office

Fumigators or Exterminators – other

Funeral Homes

Fur Stores – including pelts

Furniture Stores – including house furnishings

Garbage Works – reduction or incineration

Gas Companies

Gas Dlrs. – liquified petroleum gas

Gasoline Dlrs.

Gasoline Stations – see Automobile Service Stations

Gemstone – cutting or polishing

General Stores

Gift Stores

Glass Shops

Glassware and China Stores

Golf Clubhouses

Golf Courses – miniature – buildings

Golf Driving Range – buildings

Grain Elevators – country

Grain Elevators – terminal



Greeting Card Stores

Grocery Dlrs. – wholesale

Grocery Stores – retail – over 4000 square feet

Grocery Stores – retail – small

Grocery Stores – retail receipts of $500,000 or more and area over 3,000 square feet

Gunsmith Shops

Hair Stylist or Designer Salons

Halls – other

Halls – union

Hardware Stores – retail

Hardware Stores – wholesale

Hatcheries – poultry

Health Clubs

Hearing Aid Stores

Heating, Air Conditioning, and Refrigeration Dlrs.

Hide Stores – raw – not furs or pelts

Hobby Stores

Homes for Aged

Hosiery Stores


Hospitals – veterinary

Hospitals Equipment Rental Stores

Hotels – no restaurant

Hotels – with restaurant

Household Appliance Stores – not radios, televisions, or phonographs

Household Appliance Stores – radios, televisions, or phonographs

Household Appliance Stores – sewing machines

Housing Projects

Ice Cream Stores – no cooking

Ice Cream Stores – with cooking

Ice Dlrs.

includes restaurants

Iron or Steel Dlrs. – not scrap

Iron or Steel Dlrs. – scrap

Ivory or Ivory Products Dlrs.


Janitors Supply Dlrs.

Jewelry Stores – retail – imitation or novelty

Jewelry Stores – retail – other

Jewelry Stores – wholesale – imitation or novelty

Jewelry Stores – wholesale – other

Juice and Syrup Sales

Junk Dlrs. – buildings

Junk Dlrs. – yards

Kennels – dogs and pets

Laboratories – chemical

Laboratories – dental

Laboratories – medical

Laboratories – photo finishing

Laboratories – research, development, and testing

Laboratories – X-ray

Laundries – plants

Laundries – receiving stations

Laundries – self-service

Leather or Hides Stores – heavy, rough, or sole leather

Leather Products Stores

Libraries – commercial

Libraries – other

Light Bulb or Tube Stores

Lighting Fixture Stores

Liquor Stores

Livestock Sales Barns

Locksmiths Shops

Luggage Stores – leather

Luggage Stores – other

Lumberyards – buildings

Lumberyards – yards

Machinery or Equipment Dlrs. – farm – includes repairing

Machinery or Equipment Dlrs. – mobile construction or industrial – no repairing

Machinery or Equipment Dlrs. – mobile construction or industrial – with repairing

Machinery or Equipment Dlrs. – others – includes repairing

Machinery or Equipment Dlrs. – tractors only – no repairing

Machinery or Equipment Dlrs. – tractors only – with repairing

Magazine Dist.

Mail Order Houses

Marine Supply Dlrs.


Meat, Fish, Seafood, or Poultry Stores

Medical Laboratory

Mens and Boys Clothing Stores – 14 years or older

Mens Haberdashery Shops

Mental Institutions

Metal Scrap Dlrs.

Mill Yards

Millinery Shops


Mobile Home Parks – laundries – tenants only

Mobile Home Parks – offices

Mobile Home Parks – recreational buildings


Motels – no restaurant

Motels – with restaurants

Motion Picture Film Exchange

Motion Picture Production – Development, printing, editing, and subsequent operations

Motion Picture Studios

Motion Picture Theaters

Motion Picture Theaters – drive-in

Motion Picture Theaters – drive-in – speakers and screens

Museums – aquarium

Museums – commercial

Museums – other

Musical Instrument Stores – brass

Musical Instrument Stores – other

Navy Ships Service Departments

Necktie Stores

Newspaper and Magazine Stands

not bars, food, furniture, restaurant

not bars, food, restaurant (includes furniture)

not bars, restaurant (includes food)

not restaurant (includes bars)

Notion Stores

Nurseries – greenhouses

Nurseries – other

Nurseries – stock in the open

Nursery Schools

Nurses Homes

Nursing Homes

Office Fixture & Supply Dlrs.

Office Furniture, Fixture, and Supply Dlrs.

Office Machine Dlrs. – no computers

Office Machine Dlrs. – with computers

Office Machine Service

Office Services – mailing, addressing, copying, duplicating

Offices – government

Offices – other

Offices – physician, dentist

Oil Distributing, Terminals, and LPG Tank Farms – excluding stock

Oil Distributing, Terminals, and LPG Tank Farms – including stock

Oil or Gas Well Supply or Equipment Dlrs.

Oil Refineries – petroleum

Oil, Gasoline, or Kerosene Refineries

Optician Stores

Orphan Homes

Packaging Services – packing and crating

Paint or Wallpaper Stores

Painting or Picture Stores

Paper Product Stores

Parks – recreational buildings

Pawn Shops

Penal Institutions

Penny Arcades – recreational buildings

Pet Shops

Pharmacies – no cooking

Photo Finishing Laboratories

Photocopy and Duplication Services

Photographic Supplies Stores

Photography Studios

Picnic Grounds – recreational buildings

Playgrounds – recreational buildings

Plumbing Dlrs.

Police Stations

Pool and Billiard Halls

Precious Stone Stores

Precision and Scientific Tool and Instrument Stores

Premium or Coupon Redemption Stores

Produce Stores

Property in the Open

Psychopathic Institutions

Public Works – sewage

Public Works – water

Race Tracks – recreation buildings

Race Tracks – stables

Radio or Television Service Shops

Radio or Television Stations

Radio or Television Studios

Radio or Television Towers and Antenna

Rag Dlrs. – second hand

Record or Tape Stores – retail

Record or Tape Stores – wholesale

Recreational Centers – recreational buildings

Refreshment Stands – no cooking

Religious Goods Stores

Rental Service Stores – not contractors’ equipment

Rental Service Stores – not contractors’ equipment or television

Restaurant Fixture and Supply Dlrs.

Restaurant Furniture, Fixture, and Supply Dlrs.


Retail or Wholesale Stores –

Retirement Homes

Rifle Ranges – buildings

Rooming Houses

Rubber Stock Dlrs. – salvage

Rug or Carpet Cleaners

Sales Barns – stables

Salvage Goods Stores

Sanitariums – not hospitals

Savings and Loan Associations

Schools – bleachers or grandstands

Schools – commercial, business, or trade

Schools – dormitories – see dormitories

Schools – not commercial – including auxiliary buildings other than dormitories

Schools – stadiums

Second Hand Goods Stores

Seed, Feed, and Hay Stores

Service Risks – light hazard –

Service Risks – other –

Service Stations – see Automobile Service Stations

Sewage Works

Sewing Machine Sales

Sewing Machine Service

Shoe Repair Shops

Shoe Shine Shops

Shoe Stores – retail

Shoe Stores – wholesale

Shooting Galleries – recreational buildings

Sign Erection and Repair Shops

Sign Painting Shops – not spray

Sign Painting Shops – spray

Signs – outside

Sisters Homes

Skating Rinks – buildings – ice or roller

Sorority Houses

Sporting Goods and Athletic Equipment Stores – retail

Sporting Goods and Athletic Equipment Stores – wholesale

Stables – boarding, livery, and racing

Stables – private

Stables – riding clubs

Stables – sales


Stands – exhibit – outside

Stationary Stores

Steel or Iron Dlrs. – no scrap

Steel or Iron Dlrs. – scrap

Store and Office Fixture and Supply Dlrs.

Store and Office Furniture, Fixture, and Supply Dlrs.

Store Buildings – multiple occupancy

Store Buildings – single occupancy – see occupancy listing


Street Banners


Swimming Pools – buildings

Swimming Pools – outdoor

Tailor Shops

Taverns – no cooking

Taverns – with cooking

Taxidermist Shop

Television or Radio Service Shops

Television or Radio Stations

Television or Radio Studios

Television or Radio Towers and Antennas

Tennis or Handball Courts – buildings

Theaters – motion picture

Theaters – motion picture – drive-in

Theaters – motion picture – drive-in speakers and screens

Theaters – motion picture or television studios

Theaters – no scenery

Theaters – with scenery

Ticket Agencies – offices

Tie, Post, or Pole Yards

Tire Dlrs. – no recapping

Tire Dlrs. – with recapping

Tire Recapping or Retreading Shops

Tobacco Rehandling or Warehousing Buildings

Tobacco Sales Warehouses

Tobacco Stores – retail

Tobacco Stores – wholesale

Tool Dlrs. – retail

Tool Dlrs. – wholesale

Toy Stores

Undertaking Parlors

United Service Organizations

Vacant Buildings

Variety Stores

Vending Machines

Venetian Blind Mfr.

Veterinary Hospitals

Wallpaper or Paint Stores

Warehouses – cold storage

Warehouses – furniture

Warehouses – general merchandise

Warehouses – private – see individual listings

Warehouses – tobacco sales

Warehouses – tobacco storage

Water Softening Equipment Rental

Water Works

Wholesale Stores –

Wine Distributors – barrels

Women Clothing Stores – 14 years or older

Women Specialty Shops

Wool Merchants

X-Ray Laboratories

Contractor Insurance a Beneficial Necessity

Contractor Insurance a Beneficial Necessity

Contractor insurance is an extremely important protection for many professionals who make their living through contracted building and development work. Along with general contractors, other professionals that rely on the protection offered by contractors insurance include: Builders, developers, trade and artisan contractors who specialize in such processes as carpentry, plumbing, masonry, electrical, concrete, roofing, HVAC and more. Many contractors have been saved from business and financial ruin because of the protection afforded to them from some form of insurance.

The best avenue to find the most advantageous contractors insurance products is insurance specialists who are experts in these types of products. The good news for prospects is that most of the top providers of contractor insurance products are accessible online. Online specialists provide an extremely effective and efficient way to learn about the best insurance products. Agencies that specialize in these contractors insurance products also offer the most cost-effective solutions because of their ability to put together customized solutions that offer the coverage clients need, without the excess costs they do not need.

As one of the largest states in terms of building and new construction development, California is a hot bed of building contractors. This means that with all of the contractors working, there is a huge demand for contractor insurance protection at an affordable cost. The good news for these contractors is that there are opportunities to find honest and dependable specialized insurance carriers that offer protection required in California.

The coverage a contractor needs is dependent on the type of work he or she engages in as well as the risks associated and protection desired. The general purpose of contractor insurance is to provide financial backing for a contractor who is liable to a client who hires the contractor to perform a certain job. The most purchased type of contractors insurance is general liability insurance. As with other types of insurance, contractor general liability offers the widest protection and is most useful to a company or individual engaged any many facets of contract work. There are maximum payouts on the insurance, generally $1 million to $2 million for each type of protection. Contractors protected by a good plan are usually secured against reasonable financial loss due to problems linked to the contractors work. The most complete protection can be found from adding some more specific types of coverage to the general liability protection. The good news for contractors in California is that there are contractors insurance specialists such as us who offer great California contractor general liability insurance plans.

Worker’s compensation is a common contractor insurance purchased by many contracting companies for their employees. Workers comp insurance is a compulsory type of coverage. This protection helps the employer cover the financial burden of an employee who is injured on a job. The workers compensation insurance generally offers income, medical and rehabilitation benefits for injured employees involved in work related accidents. Some plans also include a death benefit payable to survivors.

Inland marine insurance is another specialized type of contractor insurance. This contractors insurance protects goods that are in transit over land. Many contractors move materials and goods routinely and this allows them to expect the high costs of those items. Tools, equipment and installation floaters are all considered inland marine insurance and are considered essential types of insurance for contractor.

Disability insurance is another common type of contractors insurance used by contractors and many companies, for that matter. This provides for the income needs of people displaced from work for a period of time due to injury. It is commonly referred to “Accident and Health Protection”. Health and life insurance are other types of coverage purchased by contractors.

Another common type of protection for contractor is surety bonds. A surety bond is a financial instrument not an insurance policy. A Surety Bond is a financial instrument utilized to guarantee performance. A building developer hires a general contractor and the contractor is unable to perform on his obligation to complete a building on time or as agreed, developer may look to sue contractor for not performing as promised. A performance bond provides protection for this type of exposures. License and permit bonds are required by the cities, municipalities or state. It guarantees compliance with the local, state, or federal codes. Another reason for requiring a license bond is to provide protection to the consumers. Along with contractor workers comp insurance, California contractors are required to have contractor license bonds.

It is quite obvious that companies and individuals that are involved in building development need to protect themselves from huge financial liability. Even small operations need adequate protection as a company need not be large to be a target of a builder looking for retribution. Many companies hire top contracting talent by promoting the excellent liability and contractor protection they maintain. Contracting work is often challenging and sometimes dangerous. It is important for workers to know they will be taken care if injured in the line of duty.

Contractors that either want more complete protection are want protection more customized to their limited needs might opt for other types of contractors insurance.

Contractors Liability Insurance

Contractors Liability Insurance

A combination of skills, licenses and adequate business insurance gives your company an edge among your competitors and makes you more credible and reliable to prospective clients.

Additionally, as a contractor, your company is exposed to potential damages and lawsuits that may send you out of business if you lack a stable financial safety net. Contractor liability insurance provides protection against adverse economic effects of unforeseen circumstances that could slow your business down.  Some of the risks covered include damages to physical assets, work-related and third-party injury claims like medical expenses as well as funeral cost.

Types of Contractors Liability Insurance

Many contractor liability insurance products are sold standalone, depending on the insurer. You may get any of the following from most insurers in the business insurance market:

Contractors General Liability Insurance

General liability coverage covers your company against third-party claims as a result of bodily injury or damage to someone’s property caused by your company. The policy doesn’t protect your own property.

Contractors Workers’ Compensation

Every state has a law that requires a business owner to partly or wholly provide the medical bills of employee’s work-related accidents and illnesses. This is the essence of workers compensation. The product also covers your employees’ lost wages, rehabilitation cost, and death benefit to the families of workers who die on the job. Most workers compensation insurance policies also offer employers liability insurance.

Contractors Commercial Auto Insurance

Commercial auto insurance covers any damage done to or caused by vehicles used for business. The policy has four types of products, which are:

–          Auto liability: This covers bodily injury or property damage caused by your vehicle

–          Uninsured motorist coverage: This covers damage to your vehicle caused by an uninsured vehicle, i.e. if the person who hits your vehicle isn’t insured

–           Medical damage coverage: This product covers medical bills if you or any passenger in the vehicle is injured. It doesn’t matter if the fault was from you or someone else.

–          Physical damage coverage: This provides coverage if your vehicle is damaged by something other than an accident.

Contractors Professional Liability Insurance

It is also known as professional indemnity insurance. If any of your clients suffers financial loss as a result of your company’s negligence or errors, you will be covered by this product. Professional liability is very important for businesses operating as service providers. Commercial General Liability policies excludes coverage for contractors professional liability coverage.

Contractor’s Equipment Insurance

The policy covers the operational tools and machinery owned or rented by your business, so long it is in your possession. The covered equipment will be protected against perils, such as vandalism, theft, flood and fire. The coverage isn’t tied to a specific location, as it also covers mobile machinery, such as forklifts, trailers and inland marine. Contractor’s equipment insurance is inevitable for construction contractors.

What to Consider When Buying Contractors Liability Insurance

Every business has its own uniqueness, and as such will require a customized coverage. Your contractor insurance should be in line with the common events in your line of work. Additionally, priority for a product should be considered based on the level of risk. For instance, there will be a major difference in workers’ compensation policy needs between your office employees and field employees, because the odds for work-related injuries for the latter are higher. Above all, speaking to an experienced insurance broker will help you make the right decision. We at Safepro Insurance Services are ready to assist you.

Business Owners Insurance Policy

Business Owners Insurance Policy 

A business owner policy (BOP) is a unique insurance type designed to protect major physical assets of a business, and also cover the business against liability risks. Business owner’s policy is sold is offered by property and casualty insurance companies and offers multiple types of coverage. Depending on the degree of physical damage to a commercial property or lawsuit from injured third-party, some events are capable of bankrupting your business, if you lack reliable adequate insurance coverage.  As a small or medium-sized business owner, your needs for business owner’s insurance cannot be overemphasized.

Why Do I Need Business Owner Insurance Policy?

Business owner policy has two packages combined in one policy, as it covers both commercial property and general liability. Damage to property and equipment, a lawsuit from third-party, and lack of working capital are three major factors that mostly affect the general performance of a business. These three crucial factors are what business owner policy covers as follows:

Commercial Property Insurance

Commercial property insurance protects your business against any damage to its physical assets due to vandalism, theft, fire or any kind of accidental damage. Your commercial building, equipment and fixtures are some of the properties generally covered by this product.

Liability Insurance Protection

Liability insurance covers any legal responsibility your business is held for as a result of harm done to others. This could be financial loss, bodily injury or property damage to third-person as a result of the failure or errors from your business activities.

Business Interruption Insurance

If regular business activities are interrupted as a result of mechanical breakdown, fire or vandalism, theft or a covered disaster, a company without a reliable financial protection may be forced to slow down or stop operations. With business interruption insurance, the effects will be mitigated, and your company will be well protected. The coverage usually includes the income lost for that moment of interruption and the extra cost of operating from a temporary location.

How to Get a Business Owners Insurance Policy

Before buying a business insurance policy, the following are some of the things you need to consider:

Eligibility Criteria

As with other insurance types, BOP eligibility is determined by specific criteria, depending on the company and the product. Generally, for a business to be qualified, the requirements include:

–          Having less than 100 employees

–          The building size must not exceed 100,000 square feet or six  stories if it is an office

–          The building size must not be larger than 35,000 square feet if it is for wholesale, mercantile, or processing

–          The annual revenue must be more than $1 million

–          The business must be in a low-risk industry.

Talk to a Business Insurance Broker

Just like every other important financial decision, you must do your due diligence and grasp the concept of how BOP works for your business line. An insurance borker, preferably, an expert in the business insurance policy will help you have a better understanding of it and guide you on how to buy and make the most of your business owners policy.

Free Businessowners Policy Insurance Quotes

To save money on your business insurance policy, call Safepro Insurance Services and speak to a commercial insurance broker.

Different Types of Commercial Insurance for Contractors

Commercial General Liability Insurance

Commercial General Liability (CGL) insurance protects business owners against claims of liability for bodily injury, property damage, and personal and advertising injury (slander and false advertising). Premises/operations coverage pays for bodily injury or property damage that occurs on your premises or as a result of your business operations. Products/completed operations coverage pays for bodily injury and property damage that occurs away from your business premises and is caused by your products or completed work.

Excess liability insurance pays for covered losses that exceed your CGL policy’s dollar limit.

Umbrella liability insurance is excess liability insurance coverage above the limits of automobile liability and CGL policies. The umbrella policy also provides liability coverage for exposures not covered under the primary CGL insurance policies and not excluded by the umbrella liability insurance policy.

Claims-Made Versus Occurrence Policies

Occurrence policies cover claims arising from injury or damage occurring while the policy is in force, regardless of when the claim is first made.

Claims-made policies cover claims that arise from injury or damage occurring during the policy period and reported to the insurer during the policy period. Claims arising from events outside the policy period or claims reported to the insurer outside the policy period are not covered unless special coverage is purchased or arranged with the insurer. This special coverage comes in two forms:

  1. Prior acts (“nose”) coverage covers claims that arise from injury or damage occurring before the policy period, but reported to the insurer after the policy period begins.

    Prior acts coverage is provided by establishing a “retroactive date” covering injury or damage occurring after the retroactive date. The retroactive date usually appears in the declarations page accompanying your policy. It may be the effective date of the policy or an earlier date. Prior acts coverage does not cover claims that were known at the time your policy began.

  2. Run-off (“tail”) coverage, also called extended reporting period, pays for residual claims made after your policy expires. A typical claims-made policy provides a short reporting period of 30 or 60 days after the policy’s expiration date to file claims that arose too late to report before the policy expired. Run-off coverage starts when the 30- or 60-day period ends and is provided for an additional premium. The extended reporting period may be one, three, or five years, or even unlimited.

If a claims-made policy does not continue (expires, cancels, or nonrenews), you should purchase either run-off coverage from your previous insurer or prior acts coverage from your new insurer to prevent coverage gaps. Generally, claims-made policies may be less expensive in their early years as the potential for claims increases as policy years accumulate.

 Workers’ Compensation Insurance

Workers’ compensation provides benefits to employees who are injured or become ill during the course of or due to employment.

In California, every employer is required to carry insurance to cover the cost of occupational injuries and illnesses. This insurance requirement is mandatory even if you have only one part-time employee. Companies based out-of-state with employees hired in California must also have California workers’ compensation insurance.

Workers’ compensation covers various types of events, injuries, and illnesses. An injury could occur by a single event, such as hurting your back in a fall at work. Injuries could also be caused by repeated exposure, such as hurting your wrist at work from doing the same motion over and over.

A workers’ compensation injury or illness is one that occurs due to employment. If you are injured you will receive help no matter who was at fault.

No. Workers’ compensation is only for injuries or illnesses that occur due to employment. State Disability Insurance (SDI) is for injuries or illnesses that are not work-related. SDI is a benefit provided by the Employment Development Department.

Workers compensation laws were created to ensure that employees who are injured on the job are provided with fixed monetary awards. This eliminates the need for litigation and creates an easier process for the employee. It also helps control the financial risks for employers since many states limit the amount an injured employee can recover from an employer.

Workers Compensation Insurance is designed to help companies pay these benefits. As a protection for employees, most states require that employers carry some form of Workers Compensation Insurance.

Workers Compensation Insurance is not health insurance. Workers Comp is designed specifically for injuries sustained on the job.

In most states, if you have employees, you are required to carry Workers Compensation coverage. Even in non-mandatory states, it can be a very good idea, particularly if you have many employees, or if they are engaged in hazardous activities.

Commercial Auto Insurance

Commercial auto insurance is a vehicle insurance policy that provides protection for a business’ vehicles and its drivers. Employees involved in on-the-job collisions will receive coverage for medical injuries as well, regardless of fault.

Commercial vehicles are any vehicles and trailers that a business or company uses to transport job-related materials, goods or equipment. Work vehicles have insurance premiums paid for by the company, unlike policies for personal vehicles that the vehicle owner pays for.

The most common type of commercial auto insurance is liability coverage, which most states require. It covers a driver liable for damaging cars or injuring others. Other types of commercial auto insurance include collision, uninsured, gap and personal protection.

Factors that can increase premiums include the type of vehicle driven, safety devices such as air bags and automatic seat belts, anti-theft devices and parking locations. A company’s previous insurance claims can also affect the cost of insurance.

Builder’s Risk Insurance AKA Course of Construction Insurance

Builder’s risk insurance is a special type of property insurance which indemnifies against damage to buildings while they are under construction.Builder’s risk insurance is “coverage that protects a person’s or organization’s insurable interest in materials, fixtures and/or equipment being used in the construction or renovation of a building or structure should those items sustain physical loss or damage from a covered cause.”

Buildings are subject to many different risks while under construction. They may catch fire, be damaged by high winds, or fall victim to other force majeure. A principle of common law is that any new construction or other improvement to land becomes property of the owner of the land – the title holder – once there has been an “improvement” to the owner’s site. Builder’s risk insurance indemnifies against some of these losses.

Builder’s risk insurance usually indemnifies against losses due to fire, vandalism, lightning, wind, and similar forces. It usually does not cover earthquake, flood, acts of war, or intentional acts of the owner. Coverage is typically during construction period only, and is intended to terminate when the work has been completed and the property is ready for use or occupancy.

It is usually bought by the owner of the building but the general contractor constructing the building may buy it if it is required as a condition of the contract. It may be necessary to show proof of insurance to comply with local city, county and state building codes.

Garage Insurance

Garage Insurance

Garage insurance is a special policy aimed at covering businesses in the automotive industry. It is a crucial requirement for automobile dealers, service stations, repair and customization shop owners, and parking lots operators. It makes up for the coverage for damages to third-party vehicles, which is usually not covered in the standard commercial general liability policy.

What Does Garage Insurance Cover?

This specialized policy specifically covers your business against claims from third-party injuries and property damages resulting from accidents during garage business activities. You can choose to set your plan at basic coverage or enhance it with additional policy for better and broader coverage.

Basic Garage Insurance Coverage

Basic coverage covers lawsuits if your business is sued for the cost of treatment for bodily injury sustained on your business premises. For instance, if a customer, vendors or bystander slips and falls at your shop. It may also cover general liabilities from business activities, such as discrimination lawsuits from an employee. It also includes dishonesty coverage, which covers you against theft or vandalism done by an employee to a customer’s vehicle.

Additional Garage Insurance Coverage

You may get additional coverage which covers damages to a customer’s caused by a product sold or manufactured by your shop.

Is Garage Insurance the Same as Garage Keepers Insurance?

Both are similar kinds of policies and crucial to the automotive industry, but with some differences in the area of coverage. While garage insurance covers policyholder’s business operations and autos, the other is for damage to a customer’s vehicle. Garage keepers insurance covers incidents that occur when working on a customer’s vehicles, including damages not caused by you or your employees, such as fire, theft, extreme weather, collision and vandalism.

Which Should I Choose?

You can get any or both policies from the same insurer, depending on your services. For every automotive business, garage insurance is a must. And if you keep customers’ vehicles in your shop, either for short-term or long-term repairs or services, you should also consider complementing your general garage insurance with garage keepers policy.

How to Get the Best Garage Insurance for Your Business

You can get quality coverage and save money on your policy if you deal with the right insurer. Try to compare quotes from different insurance companies or agents and buy from the one with the best offer.  The insurance amount will basically depend on your company’s annual revenue, number of employees, type of coverage and limits of coverage chosen.

Contractors Insurance Certificates and Endorsments

What is ‘Additional Insured’ Endorsement?

Additional insured refers to a person or organization identified as an insured under an insurance declaration, in addition to whomever the insurance policy is named to. After the endorsement is signed, that entity will enjoy same benefit similar to the named insured including the filing of claims, and will be protected under the insurance policy.

What is Certificate of Insurance?

Certificate of Insurance (COI) is a document issued by an insurer to the policy holder to certify that an insurance policy has been acquired. The certificate shows specified information regarding the insurance, such as the type of insurance coverage, the effective date of the policy and the amount of the applicable liability. However, the certificate is not a substitute to the actual policy document and it is a non-negotiable document that cannot be assigned to a third party.

What are Loss Runs?

Loss runs are reports compiled and generated by the insurance company that records a detailed history of the claims information of each policy holder. Even if a policy holder has no filed claims, a loss run report should still be generated to reflect no losses. Every insured has the right to receive a copy of loss runs report from their insurance company and this is available without any additional charges.

What is Waiver of Subrogation?

Waiver of Subrogation is a type of endorsement on an insurance policy wherein the insurer waived its right to pursue any claim and take legal actions against the responsible party for the loss suffered by an insured. For instance, the landlord of an apartment signed an agreement with his tenant stating that they would not be held liable for any damages occurred to the rental unit. If any damages occur, the landlord will file claims to his insurer for the damages incurred in his property. However, the Waiver of Subrogation will prohibit the insurance company from coming after the tenant for the damages incurred in the property.

What is Primary and Non-Contributory Wording Endorsement?

Primary and non-contributory wording endorsement is commonly used in general liability insurance policy to stipulate the order on how the insurance company will respond on multiple policies. The term primary on your insurance policy means that the insurer will pay you first in the event of a claim, and the non-contributory means that the insurer will not only pay you first but will also pay the full amount of your claim.

Owner Controlled Insurance Program (OCIP)

OCIP is an insurance coverage provided by a property owner to contractors and subcontractors during a renovation or construction project. This type of insurance coverage is generally designed for big projects whose total constructions costs exceed $5 million. It covers all the liability and possible losses that may arise during the period of the project. As the project owner is acquiring all the necessary insurance coverage for the project, contractors and subcontractors do not include the cost of individual insurance in their bids for the project.

In OCIP, all the necessary insurance coverage for the whole project, including the construction, workers’ compensation, hazard, materials, terrorist and other building-related insurance coverage are acquired by the project owner as part of a single insurance policy from a single insurance company.

OCIP also provides standardized insurance coverage with high liability limits for all the contractors and subcontractors, and this can reduce the construction costs by approximately one percent to two percent compared to traditional insurance policies acquired by each contractors and subcontractors.

Most OCIPs are multi-year coverage with fixed duration, with the most typical duration is between two and five years. This insurance coverage normally applies to all the contractors and subcontractors working on the project site, which includes the main constructions site, lay down yards, storage areas and on-site fabrication.

Advantages of OCIPs for Owners

  1. Cost. The acquisition of OCIPs can result to two to three percent bid reduction. This can be achieved through premium credits for a volume purchase of insurance coverage by project owner.
  1. Scope of Coverage. Project owner has a guaranteed wide insurance coverage for their OCIPs as compared to traditional non-OCIP policies, which an owner sets minimum insurance requirements.
  1. Improved Risk Management. With OCIP’s single insurance policy, risk control management and claim handling are greatly improved, and dispute among contractors and subcontractors are easily resolved with the limits of the insurance policy.
  1. Policy Limits. In OCIPs, project owner can provide more than $800 million in insurance coverage to contractors and subcontractors, in contrast to traditional non-OCIP policy where it can only carry less than $1 million in CGL coverage.

Advantages of OCIPs for Contractors

  1. Safety and Loss Control. The implementation of a wide risk control management program can enhance existing safety programs of the participating contractors, reducing injuries and other construction hazards to employees.
  1. Claims Management. The large management program of project owner through the OCIP can result to coordinated and easy claims handling procedures.
  1. Dispute between Contractors. By covering all of the project’s contractors, disputes and subrogation issues between insurers and contractors are eliminated. In traditional non-OCIP programs, contractors/subcontractors and project owner are represented by different insurers and lawyers, and this potential source of conflict is eliminated in the OCIP program.
  1. Higher Limits. Smaller contractors and subcontractors are allowed to participate in the projects that need higher liability limits.
  1. Small or Minority Contractors. Project owners provide insurance coverage to smaller or minor contractors who do not have the capability to secure necessary insurance coverage for bigger projects.

Disadvantages of OCIPs for Owners

  1. Administrative Burden. OCIPs increased administrative burden to the part of the project owner, and if not managed competently, it could lead to additional cost to the owner.
  1. Market Risk. Premium cost for the OCIP can increase if the insurance market hardens, which could potentially hurt the project owner.
  1. Bid Preparation. Additional costs and preparations are needed in imposing an OCIP programs, which is a time consuming and brings additional work to the project owner.

Disadvantages of OCIPs for Contractors

  1. Limited Insurance Coverage. OCIP is designed to provide insurance coverage for work performed on the project. However, this coverage is normally subject to various exclusions which could lessen the coverage to the contractor compared to what they could get in traditional insurance policies.
  1. Complicated Bidding. A complicated bidding process is required to demonstrate that the insurance coverage has been removed from the contractor’s bid price.
  1. Documentation Requirements. Projects with OCIP have more paper works and report intensive, imposing additional administrative burdens to contractors and subcontractors.