Commercial Insurance Tag

[wpseo_breadcrumb]

Coverage insights header image Contrary to the reimbursement method of standard commercial policies, parametric insurance is a form of coverage that offers protection based on a predetermined, measurable characteristic tied to a covered event.

Under such coverage, the amount in which a policyholder is compensated isn’t decided by the exact cost of damages sustained, but rather by the calculated intensity of the covered event itself. For instance, if a hurricane caused damage to a commercial property, a parametric policy might reimburse a set dollar amount linked to the storm’s wind speeds. Parametric insurance can be a particularly beneficial form of coverage to have in the scope of large-scale natural disasters, especially when not all associated losses entail physical damages. Yet, there are some additional aspects of this coverage offering to consider. Review the following guidance to gain a better understanding of parametric insurance.

February 2021's winter storm could be the costliest insurance event in TX history header While no firm number on insured losses has been released for the brutal weather system that has left dozens dead and millions without power or water, it is likely to cause billions in auto, property and homeowners claims, with one reported estimate at $18 billion.

Winter storms typically cause an average of $1.5 billion in property damage, according to the American Property Casualty Insurance Association (APCIA). That’s the average for ordinary years, but the subzero temperatures and precipitation striking much of the United States falls well outside the standard winter weather for some areas.

Organizations trust their senior leaders to make important decisions and act with stakeholders’ (e.g., shareholders, customers and employees) best interests in mind.

However, in today’s climate of increased corporate accountability, protecting your senior leadership team from directors and officers (D&O) liability exposures can be a significant challenge—making D&O coverage a crucial aspect of your organization’s risk management program.    

Coverage insights header image When underwriters evaluate a commercial building, they generally examine four specific characteristics— construction, occupancy, protection and exposure (COPE).

It’s not uncommon for insureds to overlook how the underlying construction of their buildings impacts their insurance. However, when it comes to property coverage, the construction class is critical and can affect rates and the overall insurability of the structure.      

Coverage insights header image

These days, floods, earthquakes and similar catastrophes are common threats to a business’s property.

In fact, according to the Insurance Information Institute, natural disasters cause billions of dollars in property losses in the United States each year.

While commercial property insurance is an essential component of a business’s risk management portfolio, it can exclude coverage for floods and earthquakes. To address potential gaps in coverage, many businesses secure difference-in-conditions (DIC) insurance. This Coverage Insights provides an overview of DIC insurance, including what it is and what types of businesses can benefit from such a policy.

Coverage insights header image

As an employer, you care about making your workforce feel valued and managing your organization successfully.

However, even if you do everything you can to ensure smooth relationships with your staff, employment practices liability (EPL) risks remain. That’s why it’s crucial for your organization to have EPL coverage. Such a policy can offer protection for claims that result from employees alleging various employment-related issues—such as discrimination, harassment and wrongful termination.

In today’s business climate of corporate transparency and accountability, an organization’s officers and directors face a myriad of employment-related exposures.

Sarbanes-Oxley regulatory mandates and shareholder activism mean directors are more frequently at risk, translating to rising claims and escalating settlement costs. In the wake of unprecedented corporate scandals in recent years, clearly the trend of corporate accountability applies to large corporations. But privately held companies, including nonprofits, are not exempt from litigation arising out of the management decisions of their boards. They, too, are at risk.

As technology becomes increasingly important for successful business operations, the value of a strong cyber liability insurance policy continues to grow. The continued rise in the amount of information stored and transferred electronically has resulted in a remarkable increase in the potential exposures facing businesses. In an...