14.0 Miscellaneous Commercial Lines Coverage
Learning Objectives
Upon completion of this chapter, you will be able to:
- Identify the key components of the Equipment Breakdown Protection Coverage Form.
- Explain the purpose of Professional Liability insurance and other specialty commercial coverages.
- Identify the common coverages and conditions of Commercial Umbrella and Excess Liability policies.
- Recall the National Flood Insurance Program (NFIP) flood coverages available for commercial risks.
- Describe the Farm Property and Farm Liability coverages.
Overview
In addition to standard commercial property and liability coverages, businesses may purchase other policies as stand-alone coverage or add them as coverage parts to a Commercial Package Policy (CPP). These coverages help fill important gaps left by exclusions in other policies, such as protection for equipment breakdown or specialized professional liability exposures. These policies are subject to the Common Policy Conditions discussed in Chapter 9, as well as their own policy conditions. When included in a CPP, they are also subject to the Common Policy Declarations and their individual Declarations pages.
This chapter examines several miscellaneous commercial insurance coverages, including Equipment Breakdown coverage, Professional Liability insurance, Commercial Umbrella Liability policies, commercial flood coverage, and the coverage forms used to insure residential and commercial farm risks.
An Insurance Story
The Furniture Company sells merchandise through both a retail store and an online website. In addition to its property and general liability exposures, it faces specialized risks related to its employment practices and online operations, such as claims involving discrimination or other workplace issues. To address these exposures, the company may need specialized coverages not included in standard policies, as well as a Commercial Umbrella policy to provide liability limits above its Commercial General Liability (CGL) coverage.