Third Party Protection
When a common interest development community purchases insurance to cover their accountable acts or liability exposures, it is called commercial liability coverage.
Commercial liability insurance insures your association against third party claims for bodily injury and property damage that is owned by others. This type of policy defends your association against most claims that allege injury or seek damages no matter whether the association is negligent or not. Remember, third party liability claims for loss can be virtually unlimited.
For any association, the commercial liability insurance pays part of or the entire amount of the damages for which you are held legally liable due to business-dealings or by law. In most cases, the policy will also cover the cost of legal defense. Adequate commercial liability coverage is a must for any association to survive. Without it, an association would have to bear the cost of defense and all damages itself.
Commercial Liability Insurance should also cover:
- Independent Contractors Liability
- Personal Injury
- Medical Payments
- Non-owned or Hired Auto Liability
- All common areas
- Host Liquor Liability
Generally speaking, the coverage limit is based on:
- Current Civil Code and your CC&Rs
- Number of units
- Association amenities
At Steve Reich Insurance, we can help you determine the right Commercial Liability Insurance coverage,