The Sovereign advantage

You take all the precautions you can, but your business could still face being named in a lawsuit. Litigation can have a serious financial impact to your bottom line, not to mention that it could hurt your reputation. Commercial General Liability coverage can help to defend your business against claims and, if you’re found legally responsible, can pay for losses your business incurs for injuries sustained by others or damage to property owned by others.

In an increasingly litigious society, the need for the right coverage, and the right limits, is critical. Liability risks vary across different industries. Our experienced team work closely with your broker to assess the liability exposures specific to your business to put the right protection in place.

 

Customer centric

We focus on what our clients need, not what we have to sell. We strive to understand your business, deliver the right protection and empower you to make your operations better. We believe your experience matters and we pride ourselves on exemplary service.

Cost effective

We tailor coverage limits and terms to meet the needs of your business – giving you more of what you need and less of what you don’t. This ensures that your policy is cost effective, and that you get great value.

Complete solutions

There’s more to your business than your liability exposures and that’s why we take a holistic approach to assessing your coverage needs. We provide a complete package solution which reduces the potential for gaps in coverage.

Coverages designed to protect your business

Commercial General Liability protection can help to defend your business against claims and, if you’re found legally responsible, can pay for losses your business incurs for injuries sustained by others or damage to property owned by others. Having the proper liability protection in place also protects your business from claims for libel, slander, copyright infringement, defamation or wrongful prosecution. Most businesses need liability protection, but no business’ liability risks are exactly the same. So, we also offer a variety of additional coverage extensions and enhancements that can be incorporated to provide an insurance solution that fits your business needs. Explore some of our key liability coverages below.


Commercial General Liability

Commercial General Liability

Coverage snapshot

Accidents happen so it’s important to protect your business against potential liability claims. Commercial General Liability can provide protection if your business is found to be legally responsible for property damage or bodily injury to third parties that takes place on your premises, as a result of your day to day operations, from the products you make or from the work you’ve completed. Commercial General Liability also extends to personal and advertising injury, which can cover losses arising from libel, slander, copyright infringement, defamation, wrongful prosecution and more.

 

Imagine a scenario where...

Legal Liability on your premises

A customer slips and falls on the wet floor of your showroom and sustains a broken elbow. He sues your business, seeking compensation for his injury and for damages like lost wages.


Legal Liability as a result of your operations

A forklift driven by one of your employees is carrying a load of steel plates into your plant. On their way into the lot, the forklift strikes a parked car in the parking lot next to your building. The owner of the vehicle seeks compensation for the cost to repair her car.


Legal Liability as a result of your products

An appliance you manufacture overheats causing a fire that damages a customer’s house. The customer’s insurance company pays for the repairs to his home and then pursues your business given your product was determined to have caused the damage.


Legal Liability as a result of your completed operations

Your employees have installed new windows in a building. But following a heavy rainfall, they leak causing significant water damage to the floors and walls. It’s determined that the windows have been installed incorrectly. The building owner sues for the cost of the clean-up and to repair the damage.


Legal Liability as a result of personal and advertising injury

Your on-line advertising features a video that disparages your main competitor, stating their product is made with inferior quality parts. Your competitor actually uses the same parts that your company uses and they sue your company for libel.


In each of these cases, Commercial General Liability can help protect you against the cost of these claims.

Non-Owned Automobile Liability

Non-Owned Automobile Liability

Coverage snapshot

Sometimes you need to rent a vehicle or allow employees to use their personal vehicles to keep your operations moving. Non-Owned Automobile Liability provides coverage for bodily injury and property damage to third parties arising from the use or operation of certain classes of automobiles not owned by or licensed in the name of your business. It can also be extended to cover damage to rental vehicles.


Imagine a scenario where...

Your employee rents a car to travel to the US for a meeting. They’re unfamiliar with the city and accidently turn onto a one-way street into oncoming traffic. They quickly adjust but hit a light pole. Fortunately, they’re not hurt but the car is a total loss and the pole is damaged. Non-Owned Automobile can pay for the loss of the vehicle and the damage to the pole.

Tenant's Legal Liability

Tenant's Legal Liability

Coverage snapshot

Your business may not own the building it operates out of, but the lease makes it responsible for any damage to the property. Tenant’s Legal Liability provides coverage for property damage to the premises that insureds rent, lease or occupy that arises out of their negligence.


Imagine a scenario where...

One of your employees is doing some welding in your shop when some stray sparks start a fire that causes significant damage to the building your business is leasing. Your business is held legally liable for the damage pursuant to the lease and without the proper coverage your business could face a substantial financial burden. Tenants Legal Liability coverage could help pay for the cost of repairs.

Employers Liability

Employers Liability

Coverage snapshot

Your employees are your business’s greatest asset and their safety and wellbeing are your top priority. But not all trades or classes of employees are covered by Workers’ Compensation. If any one of these employees become ill or injured as a result of their employment, Employers Liability can provide coverage for claims brought against your business if it’s found to be negligent.


Imagine a scenario where...

One of your employees slips in some oil on the floor of your shop that has leaked from a poorly maintained piece of machinery. Your employee suffers a back injury and sues for damages and loss of wages. If your business was found negligent in properly maintaining the equipment, Employer’s Liability could help cover the expenses incurred by the lawsuit.

Employee Benefits Liability

Employee Benefits Liability

Coverage snapshot

Employees rely on your business’s employee benefits program. Unfortunately, the administration of the program is subject to human error. Employee Benefits Liability provides coverage to an employer for errors or omissions in the administration of its employee benefits plan.


Imagine a scenario where...

An employee suffers a major health problem and submits a large claim to their employee benefits plan. A week later, they receive a notice that their medical claim was denied coverage. Turns out, an administration error occurred and the employee was never added to the plan. In this case, Employee Benefits Liability could help pay for the benefits that would have been payable under the health plan had the error not been made.

Blanket Additional Insured – Contract or Agreement

Blanket Additional Insured – Contract or Agreement

Coverage snapshot

Your business works with many partners, some of whom it has a legal obligation to insure. The Blanket Additional Insured endorsement, when added to a General Liability policy, extends general liability coverage to any person or organization with whom an insured has contractually agreed to insure under their General Liability policy. Not only does this ensure that all parties your business is contractually obligated to insure are covered for liability caused by your business's acts or omissions, but in many cases it’s also more efficient than insuring each party separately.


Imagine a scenario where...

Your business is a manufacturer with multiple distributors. All the contracts your business has with its distributors require that their company names be added to your liability policy as an additional insured. This is to protect them from any potential product liability because they sell your business's product. The Blanket Additional Insured endorsement means you don’t need to ask to have each distributor’s company name individually endorsed on your business's policy as an additional insured.

Product Recall Expense

Product Recall Expense

Coverage snapshot

The health and safety of your business's customers is important and so is your business's reputation. Despite having a thorough quality control program, as a manufacturer, distributor or importer it’s possible that you may have to withdraw a product from the market because it has caused or may cause injury, sickness, death or property damage. Product Recall Expense can help reimburse you for some of the expenses related to a withdrawal of your product from the marketplace. These expenses include the cost to ship product back from retailers, distributors and consumers and the cost to dispose of the product. If you’re a manufacturer, we include certain additional expenses, including certain costs if the recall is due to actual or potential product tampering.


Imagine a scenario where...

You’re a shampoo manufacturer with a large facility that develops and packages 50 different products. It’s discovered that one of the shampoos you make mistakenly contains an ingredient that can cause severe skin irritation. Product Recall Expense can help reimburse some of the costs associated with getting the product off the shelves and out of onsumers’ hands. Without this Product Recall Expense endorsement, the additional expenses that you incur during a recall could be a substantial financial burden.

Wrap Up Liability

Wrap Up Liability

Coverage snapshot

Whether you’re the owner or the General Contractor of a large construction project, you want protection that gives you peace of mind knowing that everyone involved is properly insured. A Wrap Up policy makes it easier to make sure that the owner(s), project manager and all of the contractors and subcontractors working on the project are all covered under one policy for bodily injury or property damage to third parties. Wrap Up Liability also guarantees that liability coverage for the completed project work by everyone involved will remain in place for a period of 12, 24 or 36 months, whichever is selected, after the project has been completed.


Imagine a scenario where...

Some building materials fall from one of the upper floors of your construction project injuring passers-by below. It’s unclear which contractor on your job site is responsible but with Wrap Up Liability it doesn’t matter as everyone involved in the project is covered.

Umbrella/Excess Automobile Liability

Umbrella/Excess Automobile Liability

Coverage snapshot

You might want to further safeguard your business’s financial well-being with an additional layer of liability protection. Umbrella/Excess Automobile Liability provides excess liability limits in addition to the liability limits provided by your specified General Liability and Automobile Liability policies. It also provides drop down coverage to fill any potential gaps in the underlying coverage.


Imagine a scenario where...

Umbrella Commercial General Liability

Your business manufactures a variety of snack food products. On one of your product labels you fail to include a warning about a potential nut allergy, and several people who consume your product have an allergic reaction. A class action suit is filed and the resulting claim payout is $3 million for damages. You have a General Liability policy with a limit of $2 million but you also have an Umbrella policy for an additional $3 million limit. Without the Umbrella policy, you would have had to pay the additional $1 million of the claim and contribute to the defense costs from your business’s own assets.


Umbrella/Excess Automobile Liability

One of your trucks is left at a customer’s loading dock overnight. While there, a fire starts in the engine that spreads rapidly and damages your customer’s building. Your customer sues for the cost to repair the building, which is estimated at $1.5 million. Your current Automobile policy covers you for a third party liability limit of $1 million and you have an Umbrella/Excess Automobile policy for an additional $4 million in coverage. Without the Umbrella policy your business would have to pay the additional $500,000 in property damage out of its own assets.

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