Business Insurance FAQs

What is a certificate of liability insurance?
A certificate of liability insurance is a snapshot of the coverage provided by the various insurance policies you have in effect at the time the certificate is generated. It cannot modify an insurance policy and it is not a contract. As such, a certificate cannot reference lines of insurance coverage and/or endorsements that are not in effect at the time of issuance.


What is an additional insured?
An additional insured is a person or entity to which liability coverage is extended at the request of the Named Insured. Typically, this is done as a result of a written contractual agreement under which the Named Insured agrees to indemnify the Additional Insured in the event of a covered liability claim. Additional Insureds do not have the right to change coverages on a Named Insured’s policy nor are they automatically provided with cancellation notices (a separate endorsement must be issued to provide this).


What is hired and non-owned auto liability?
Hired autos are vehicles that your business leases, rents, hires, or borrows for business purposes (but not borrowed from your employees). Non-owned autos used in connection with your business but are not owned, leased, hired, rented, or borrowed by the named insured. Typically, non-owned autos tend to be employee-owned vehicles that employees use for business reasons. Hired and non-owned auto liability extends liability coverage (bodily injury and property damage coverage) to vehicles that fall into either of these categories. Hired car physical damage may be purchased as an additional coverage in conjunction with hired and non-owned auto liability. This coverage provides comprehensive and collision coverage to vehicles that are considered to be hired autos.


What is a commercial umbrella?
In simple terms, commercial umbrella insurance complements your other liability coverages by taking over when your other liability coverage limits have been reached. These policies come into play when large claims occur and exhaust the limits of the primary general liability, auto liability, and/or other liability policies that are in place for an insured.


What is general liability vs. professional liability?
General liability covers risks such as bodily injury and property damage, medical payments, reputational harm, and advertising errors. Professional liability, also called errors and omissions insurance, protects your business if your client alleges financial damages from the professional service that you provide.