w Lehrer & Madden Insurance - Commercial Insurance FAQs

Frequently Asked Questions

General Questions

  1. Who Needs Business Insurance?
  2. What type of Insurance protection do I need?
  3. Business Owners vs. Package?

Who Needs Business Insurance?

Any person, partnership or entity operation a business should secure Business Insurance. Whether you're working from your home, leasing space or conducting business at another's location its import to protect your financial and business exposures. Please contact us for a no obligation insurance review.

2. What type of Insurance protection do I need?

Most businesses will carry a combination of Property and liability coverage's. Your coverage will depend on the unique aspect of your operations and needs. Property, General Liability, Commercial Auto, Umbrella, Workers' Compensation are a few of the coverage's may wish to pursue. Again, each business is unique, please contact our office to review your insurance needs.

3. Business Owners vs. Package?

A Business owners policy is designed to meet the needs of many small to mid size businesses. This coverage form provides Property and Liability coverage and includes protection for Equipment Breakdown, Computer and many other common exposures businesses may face.

The Package policy form is designed for more complex exposures or when only specific coverage is desired. The package form allows the insured to individually choose certain coverage lines (i.e. Property and Business Income only).

Business Property Coverage

  1. Property vs. Electronic Data Processing Equipment (EDP)
  2. What is Bailee's coverage?
  3. Where is my property covered?

1. Property vs. Electronic Data Processing Equipment (EDP)

Your standard policy will provide some coverage for damage to your physical computer equipment if caused by a covered loss. However, what expense and how many man hours would it take to recreate your lost data? Coverage provided on an Inland Marine form can help in reducing these expenses.

2. What is Bailee's coverage?

Property of others in your care, custory or control is often excluded or limited unless "Bailee's"coverage is provided. Dry Cleaners, Cobblers, Tailors, Restaurants, Auto Repair Stations and many other businesses are at risk of their client's property being damaged while in their care.

3. Where is my property covered?

Generally property is covered at the described location(s) listed on your policy with a limited coverage while off premise or in transit. Businesses that provide delivery service, salesmen's samples, attend trade shows and exhibitions or travel frequently may need to assign a specific limit to protect their property while off site.

Business Automobile

  1. How does Hired & Non Owned Auto Liability respond?
  2. What is "Drive Other Car" (DOC) coverage?

1. How does Hired & Non Owned Auto Liability respond?

This coverage provides excess liability protection in the event a vehicle not owned or hired by the business is involved in a auto loss (i.e. employee involved in an auto accident while going to the post office for the company, employee renting a vehicle in the business name).

2. What is "Drive Other Car" (DOC) coverage?

Drive Other Car coverage provides protection for personal liability and physical damage coverage in the event you do not have a personal auto policy or are not listed on a Massachusetts personal auto policy.

Workers' Compensation

  1. Who needs Workers' Compensation Coverage?
  2. How does Workers' Compensation coverage apply to owners?

1. Who needs Workers' Compensation Coverage?

Any individual or entity (partnership, LLC, Corporation, etc.) with employees is required to provide Workers' Compensation coverage on their behalf. This includes full time, part time, domestic workers and family members.

2. How does Workers' Compensation coverage apply to owners?

In Massachusetts if you're a corporation coverage for officers is automatically included. If eligible you may elect to be excluded from coverage by submitting to the Department of Industrial Accidents a completed, Form 153 "Affidavit of Exemption for Certain Corporate Officers or Directors".

For entities and individuals other than a corporation coverage for owners and members is excluded. You may elect coverage by submitting a written request on your letterhead indicating your name, status (owner, partner, and member) and desire to elect coverage.

Business Liability Coverage

  1. What's the difference between Premises and Products Liability?
  2. Professional Liability?
  3. What is a Hold Harmless Agreement?

1. What's the difference between Premises and Products Liability?

Premises Liability provides protection for bodily injury and property damage sustained at a specific location. Product Liability provides protection for injury sustained as a direct result of a product.

2. Professional Liability?

Attorneys, Physicians, Dentists, Engineers generally come to mind when we think of Professional Liability. However Professional Liability can also be provided for Beauticians, Barbers, Certified Public Accountants (CPA), teachers, consultants and many other industries which are considered skilled professions.

3. What is a Hold Harmless Agreement?

A hold harmless agreement is the transfer of liability from one party to another by written contract. Generally there are two parties, the indemnitor - the party who takes on the financial burden of another and the indemnitee - the party who transfers the liability.