What Your Commercial Package Policy Does Not Cover

​One of the best ways to protect your business against losses and liabilities is to purchase commercial package insurance coverage. 

Many businesses are legally required to carry at least some type of insurance policy to conduct business in most states, but that doesn't mean it covers everything you might think it does. 

Here are four things your commercial package policy will not cover

CPP Doesn't Cover Health and Disability
Although your commercial package policy covers business trips, you should know that it doesn't cover health or disability.

This means that medical expenses, including dental or emergency room visits that you may get while away from home on a business trip, aren't covered. 

Workers' Compensation
Even if you have a commercial package policy, workers' compensation is not covered. 

To protect your business against workers' comp claims, you may want to consider purchasing additional insurance or setting up a self-insurance fund to cover any worker injuries or deaths.
 
Many states have guidelines for how much your payroll should be reserved for workers' comp payments.

Life Insurance
In general, a commercial package policy does not cover life insurance. The premiums for a separate policy will be higher, but you'll have control over your coverage amounts and beneficiaries. 

You can also choose to purchase one through an individual health plan offered by your employer, which is what most Americans do.

Directors and Officers (D&O) Liability
Professional liability insurance does not cover D&O, designed to protect your assets if you are sued for making a poor business decision. 

If you're concerned about potential lawsuits and want to be prepared, it's wise to consult with an attorney and add D&O onto your policy when you purchase it.

Conclusion
There is some wiggle room regarding what you can and cannot put on your commercial package policy. Depending on how your business operates, you can add or take away from it.

It's up to you to understand what each of these clauses means for your company; only then will you be able to make appropriate changes to ensure that all parties are protected.

At Desmond Insurance, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (859) 491-5100. You can also request a free quote by CLICKING HERE. The coverage discussed is not guaranteed. Please contact our agents to make sure you have adequate coverage and your needs are being met. We are happy to help!