Other Commercial insurance
Some exposures fall outside traditional property, liability, auto, and workers’ compensation policies. The following coverages address additional risks that may apply depending on your operations, contractual requirements, or regulatory obligations.
Excess Liability & Umbrella Coverage
Excess and Umbrella policies provide additional liability limits above underlying policies such as Commercial General Liability, Commercial Auto, and Employers’ Liability.
Excess Liability
Excess Liability increases the limits of a specific underlying policy. It is typically written on a follow-form basis, meaning it follows the same terms, conditions, and exclusions as the underlying coverage. It does not broaden coverage — it simply provides additional limits once the primary policy has been exhausted.
Umbrella Liability
Umbrella coverage also provides additional liability limits over underlying policies and may, depending on the policy form, offer broader protection in certain situations.Umbrella limits are often structured to align with contractual requirements, landlord agreements, or industry standards. As with all liability coverage, limits should reflect operational risk and the potential severity of loss.
Cyber Insurance
Cyber risk is no longer limited to large corporations.Any business that stores client information, processes electronic payments, uses cloud-based software, sends invoices, or relies on email systems has potential exposure. In today’s operating environment, even small organizations can experience data breaches, ransomware events, or fraudulent funds transfers.
For smaller businesses in particular, the financial impact of a cyber event can be significant. Recovery costs often extend beyond technical repair and may include legal counsel, regulatory response, client notification, public relations management, and temporary business interruption.
Cyber insurance may provide coverage for:
Data breach response and notification costs
Data restoration and system repair
Legal defense and regulatory investigations
Cyber extortion and ransomware payments (subject to policy terms)
Business interruption resulting from a covered cyber event
Funds transfer fraud and social engineering losses (when endorsed)
Cyber events are not limited by company size. Evaluating cyber exposure is an important part of modern risk management for businesses of all sizes.
Surety Bonds
Surety bonds are not insurance policies in the traditional sense. They are guarantees that a contractual or legal obligation will be fulfilled.Unlike insurance, a bond involves three parties:
The Principal – The party required to perform
The Obligee – The party requiring the bond
The Surety – The company providing the guarantee
Contract Bonds
Bid Bond – Guarantees the winning bidder will accept the contract and provide required performance and payment bonds
Performance Bond – Guarantees the work will be completed according to contract specifications
Payment Bond – Guarantees subcontractors and suppliers will be paid
Completion Bond – Often required by lenders to guarantee a project will be completed
Other Commercial Bonds
Supply Bond – Guarantees materials will be delivered as agreed
Permit Bond – Guarantees compliance with local regulations
License & Permit Bonds – Required for certain regulated professions
Fidelity Bonds
A Fidelity Bond protects a business from financial loss due to employee dishonesty, including theft of money, securities, or other property. Fidelity bonds may be written as standalone bonds or structured within a broader crime insurance program, depending on the carrier and coverage design.
Fiduciary Bond (ERISA Bond)
A Fiduciary Bond is required under federal law (ERISA) for individuals who handle employee benefit plan funds. This bond protects the employee benefit plan — not the employer — against losses resulting from fraud or dishonesty by those managing plan assets. It does not provide liability protection for fiduciary decisions. That exposure is addressed under Fiduciary Liability insurance.
Builder’s Risk Insurance
Builder’s Risk coverage protects property during the course of construction or renovation. It is typically written for:
New construction projects
Major renovations or additions
Structural remodeling
Coverage generally applies to materials, supplies, and the structure itself while under construction.
Who Purchases Builder’s Risk?
The policy may be purchased by:
The property owner
The general contractor
A developer
The responsible party is usually defined within the construction contract.
Important Considerations
Builder’s Risk is not a substitute for other coverage. In many cases:
The property owner will still need a separate property policy, particularly if the building is partially occupied or transitioning from vacant to occupied.
General contractors still require their own General Liability coverage.
Subcontractors must carry their own liability coverage as well.Policy terms, coverage triggers, and expiration dates vary.
Coverage often ends upon project completion, occupancy, or acceptance by the owner.
Why This Matters
Many commercial risks arise from contracts, construction projects, technology use, or financial guarantees — not just daily operations. Builder’s Risk, Umbrella, Cyber, and bonding requirements often exist because of specific project demands or contractual obligations.Evaluating these exposures proactively helps prevent gaps during critical phases such as construction, expansion, or regulatory compliance.
Each policy will have stipulations, limits, and exclusions. Extensions, riders, and floaters are available to fill any gaps. The information on this website is an overview of the types of insurance you may be able to purchase, but does not comprise full explanations of policy types nor does it guarantee any particular coverage or policy.