Commercial Insurance Coverages

Business insurance helps companies, like you, protect your financial assets, intellectual and physical property from a covered loss due to risks such as lawsuits, property damage, theft, vandalism, loss of income and employee injuries and illnesses. The coverages businesses need vary based on the industry, size, location and number of employees. Here are a few additional coverages your company may need:


Corporate directors and officers are sometimes held personally responsible for the acts of their company. Rather than put their personal assets at risk, you should protect them from claims by employees, clients and stockholders.


Who is D&O Insurance Right for?

Any business, including private companies, public companies and financial institutions, with a board of directors should have Directors & Officers liability insurance coverage. Claims against companies and their directors and officers are increasingly common.


If your business works with vendors or government entities, or has employees or customers, you may have exposure that could make your organization and its executives vulnerable to costly legal action.


Directors & Officers insurance is an important aspect of a corporate risk management strategy and can help your company attract and retain qualified executives and board members.


Your vehicles are critical to the success of your business. To successfully protect your business, it is important to have properly set up commercial auto insurance. There are a number of different options to consider, like whether fleet insurance or per vehicle policies are the best solution for your situation. Shepherd Insurance specializes in insurance and risk management for businesses, and we are here to guide you through the available options.


What is Commercial use?

Your personal auto insurance will not cover commercial use of your vehicle. That is why it is important to discuss your needs with us, so that in case of an accident there is no chance of being uninsured.


The following can help lower the cost of business auto insurance:

  • Anti-theft and safety devices – alarms, GPS tracking and air bags lower premiums. Programs that require seat belt usage can also reduce costs.
  • Deductibles – deductibles represent the portion of risk you absorb before insurance pays on a claim. Higher deductibles mean lower premiums.
  • Driver records – hiring qualified drivers with safe driving records can significantly reduce premiums.
  • Location – determines premiums for the theft portion of your insurance coverage.
  • Vehicles – having 5-star safety rated vehicles can reduce premiums significantly.

Other Considerations

Certain types of businesses are subject to federal and state regulations in the operation of their vehicles. It is important to understand those regulations. We will help ensure you are in compliance. If your company uses vehicles owned by third parties, such as leased or rented vehicles for instance, you will need non-owned vehicle coverage. We will ensure you have the appropriate type and level of coverage for your business.


With exposures leading to employment practice claims increasing over the years due to economic conditions, demographics and the ever-evolving legal environment, it is important to protect your bottom line.


Companies in every industry increasingly face potential litigation from employee-related claims.


What Does Employment Practices Liability Insurance Cover?

Employment practices liability insurance can provide coverage to a business if employment related claims are brought against them—from the beginning of the hiring and screening process to the termination of an employee. Here are some examples:

  • Discrimination (due to gender, race, age, disability, religion, etc.)
  • Deprivation of career opportunity (hiring or promoting)
  • Violation of the Family Medical Leave Act (FMLA)
  • Sexual harassment
  • Invasion of privacy
  • Wrongful termination
  • Breach of contract
  • Negligent evaluation
  • Wrongful discipline
  • Infliction of emotional distress
  • Mismanagement of employee benefit plans

EPLI will also cover a situation where one employee harasses another.


Commercial flood insurance can help protect your business property, assets and help cover repair and replacement costs if your business get damaged by floodwater.


What Does Commercial Flood Insurance Cover?

If your business or property gets damaged from floodwater, commercial flood insurance can help cover your repair costs. Below lists what’s included in a flood insurance policy’s building and contents coverage.
Building Coverage
  • Electrical and plumbing systems
  • Furnaces and water heaters
  • Appliances
  • Permanently installed carpeting
  • Permanently installed cabinets, paneling and bookcases
  • Windows
  • Foundation walls, staircases and anchorage systems
  • Detached garages
  • Fuel tanks, well tanks and pumps
  • Solar equipment
Contents Coverage
  • Personal property, such as clothing or furniture
  • Curtains
  • Portable and window air conditioners
  • Carpets not included in building coverage, such as carpeting installed over wood floors
  • Currency, precious metals and valuable items


What Is Not Covered by Flood Insurance?

Be aware that the cause of a flood plays a role in coverage. The NFIP defines a flood to be an excess of water on land that’s normally dry and either affects:
  • At least two acres of land
  • Two or more properties
If your business property gets damaged by a sump pump backup that wasn’t caused by flooding, your commercial flood insurance policy won’t cover the claim. Commercial flood insurance also doesn’t cover every kind of property damage claim.


Many states use the standards of the National Council of Compensation Insurance to determine workers’ compensation insurance rates. The NCCI is a non-government, private organization that uses classifications to determine the risk factors involved in particular jobs.

We work with clients to ensure they understand workers’ compensation insurance, and evaluate their needs to ensure their employees are properly classified.

Premiums are determined through a formula which includes a number of factors including salary, benefits and other variables. A remuneration number is then arrived at and used in conjunction with the risk factor classification of the job to arrive at the cost of the insurance. Premiums can also be adjusted by “experience modification factors,” which are standards set by the NCCI and other organizations for reducing premiums based on a company’s reputation.

Initial premiums are based on a number of prognostications, including the amount of wages to be paid to workers. At the end of the policy period an audit is performed to determine the actual premium amount. The outcome of the audit can result in either a refund or additional premiums due.


We’d love to hear from you. If you need assistance, have questions about our group of Shepherd partner companies or are simply looking for more information, we’re eager to help. Please fill out the form below and one of our team members will be in touch to provide the assistance you need.

Protecting what matters most since 1977.