What is Commercial Property and Liability Coverage?
Sometimes referred to as a Business Owner’s Policy (BOP), it’s business insurance coverage that provides property and general liability insurance to small businesses. The Business Owner’s Policy prepackages a group of coverages desirable to businesses. Usually coverage is provided for Property Coverage; Business Interruption and Continuation Coverage; General Liability Coverage; and Crime Protection.
Also available under the small commercial property and casualty category are Workers’ Compensation, Commercial Auto, Commercial Liability Umbrella, Fidelity, Mechanical Systems, and Kidnap and Ransom insurance.
What is Workers’ Compensation Coverage?
This coverage pays compensation and other benefits required of the firm by the workers’ compensation law or occupational disease law of any state listed in the policy. The coverage applies to bodily injury by accident and by disease arising out of and in the course of an employee’s employment.
Who needs Commercial Property and Liability Coverage?
Any firm or sole practitioner who:
- Leases space for business purposes
- Owns a business property
- Has office property or equipment
- Has employees
- Provides company cars to partners/employees
- Handles client records or property
- Handles firm or client cash/funds
- Has clients visit their business premises
Why is this coverage part of the AICPA Member Insurance Programs?
The AICPA Member Insurance Programs is dedicated to help protect the financial interests of America’s CPAs with affordable, high quality professional and personal insurance coverage. The Program offers a comprehensive portfolio of business insurance products available to AICPA member firms. Many firms must buy some or all of these coverages to conduct business. Small commercial property and liability coverage rounds out the insurance offerings to CPA firms.
How is commercial property and liability serviced by the AICPA Member Insurance Programs?
As the national administrator for the Program, Aon Insurance Services offers a selection of commercial property and liability insurance products to AICPA members. Members have access to a panel of well-known and highly-rated carriers experienced in commercial property and liability insurance products. Interested firms will receive a quote for a suitable insurance solution from a price and product perspective.
The panel of carriers also offers a variety of optional coverage endorsements specifically designed for CPA firms. Specific coverage features address loss of reference libraries, business income classified as billable hours, higher than normal limits for researching and recreating valuable papers and records, extended timeframes for lost income, and employee dishonesty (including ERISA claims), among other things. The appropriate coverage can be selected for the needs of each firm.