❓ Frequently Asked Questions
Frequently Asked Questions
Answers to the most common questions about commercial insurance for contractors, HOAs, restaurants, and commercial landlords.
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Bobby Friel
Partner, Direct Insurance Services
These are the questions I hear most from business owners trying to understand their commercial insurance options. If yours isn't answered here, send me a message and I'll get you connected with Patrick and the licensed team at Direct Insurance Services for anything that requires a licensed agent's review.
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“Helped me get the right coverage for my business and made everything super easy to understand. Bobby was especially great — very friendly, responsive, and genuinely cared about making sure I was taken care of.”
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“He takes the time to understand your business needs before recommending coverage. You can tell he genuinely cares about his clients and goes the extra mile to make sure everything is handled properly.”
— Jen K., Google Review
“I run a snow plow removal business and my old insurance provider dropped my coverage!! They got everything sorted out and I was insured the same day. These guys know how to help, use them!!”
— Jessica K., Google Review
General Insurance Questions
Common questions about our process, quoting, carriers, and how we work.
17 questions in this section · 50 total questions
Most quotes are returned within 24–48 hours. We review your contracts and requirements before quoting to ensure compliance on the first try.
Before we quote anything, we review your contracts, GC requirements, leases, and governing documents. This means your policy is built to pass compliance the first time — no back-and-forth, no rejected COIs. See our step-by-step process for details.
Yes. We work with 30+ A-rated carriers including Progressive, CNA, Chubb, Travelers, Nationwide, and others to find the best coverage and pricing for your business.
After we prepare your quote options, we walk you through them on a short video call. We screen-share your actual policy documents and explain the limits, exclusions, deductibles, and endorsements in plain English. This way you know exactly what you are buying, what is not covered, and why we recommend specific options before you commit. The call typically lasts 15-30 minutes and is included at no extra charge.
Absolutely. We review your contracts, leases, and lender requirements before quoting so your policy is built to meet them. Certificates of insurance (COIs) are issued immediately upon binding, and we confirm endorsement language matches your contract requirements before you sign. This is critical for contractors who need contract-verified COIs for job sites.
No. You can start with our online quote form. Either way, you will work with a real person who specializes in your industry.
We specialize in five areas: contractors (our largest focus), HOA and condo associations, restaurants and food service businesses, commercial landlords (lessors risk), and cyber insurance for healthcare, e-commerce, and tech. This specialization means we understand the unique risks, contract requirements, and carrier markets for each industry.
Yes. We work with specialty carriers that handle higher-risk classes like roofing contractors, bars with late-night hours, and mixed-use commercial properties. Having prior claims or a lapse in coverage does not mean you are uninsurable.
Step 1: Start your quote online. Step 2: We review your contracts, leases, and COI requirements so we understand what your policy needs to include. Step 3: We shop your risk across 30+ A-rated carriers. Step 4: We walk you through your options on a video call, explaining limits, exclusions, and pricing. Step 5: Once you choose, we bind coverage (often same-day for contractors) and issue your certificate of insurance immediately. Step 6: We provide ongoing support for COIs, endorsements, policy changes, and renewals. See our How It Works page for more detail on each step.
Before we bind your policy, we cross-reference every certificate of insurance requirement in your contracts, leases, and lender agreements against the proposed policy terms. We verify that limits, additional insured endorsements, waiver of subrogation language, and any special requirements are met. Once bound, your COI is issued immediately and sent directly to the parties that need it. Most COI requests after binding are turned around within a few hours.
We are licensed and actively writing policies in 29 states: Arizona, California, Colorado, Delaware, Georgia, Idaho, Illinois, Iowa, Maryland, Michigan, Minnesota, Missouri, Montana, Nevada, New Jersey, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, and Wyoming.
Switching is straightforward and does not require cancelling your current policy mid-term. You can appoint us as your agent of record at any time, or we can start working on your account before your renewal date. We review your current policies, identify coverage gaps, and shop your risk across our carrier network. If we find better coverage or pricing, we place the new policy at your renewal. There is no cost or obligation to get a comparison quote.
We begin the renewal process 60-90 days before your policy expires. We review any changes to your business (new vehicles, employees, revenue, locations), re-shop your risk across carriers if pricing has increased, and present renewal options on a video call. If your carrier is still the best fit, we renew in place. If not, we move you to a better option with no lapse in coverage.
Certificates of insurance are issued immediately upon binding. After that, additional COI requests are typically completed within a few hours. If you need a rush COI for a job that starts tomorrow or a closing that is this week, let us know and we will prioritize it.
Contact us and we will guide you through the process with your carrier. Each insurance company has its own claims department, but we act as your advocate throughout. We help you report the claim, provide the carrier with the necessary documentation, and follow up to make sure it is handled promptly. For emergencies, most carriers also have 24/7 claims hotlines that we will provide to you at binding.
Most carriers offer flexible payment options including pay-in-full (which often includes a discount), monthly installments, quarterly payments, and premium financing for larger accounts. The specific options depend on the carrier and policy type. We present all available payment plans during your video quote review so you can choose what works best for your cash flow.
We are compensated by the insurance carriers through standard commissions built into the premium. There are no additional broker fees or consulting charges for our quoting, video review, COI management, or ongoing support services.
Contractor Insurance FAQs
Coverage requirements, costs, endorsements, and compliance for contractors.
9 questions in this section · 50 total questions
Yes, in most cases. State licensing boards, general contractors, property owners, and lenders all typically require proof of insurance before work begins. Requirements vary by state and contract type. We help you understand exactly what is required before you start.
Most policies are quoted within 24-48 hours. We review your contracts and GC requirements before quoting so your COI clears on the first submission. A certificate of insurance is issued immediately upon binding.
Contractor insurance pricing depends on your trade classification, revenue, payroll, claims history, and contract requirements. The biggest factor is the type of work you do — a roofer pays dramatically differently than a painter or handyman. Our Risk Calculator walks you through the factors, and we'll quote your specific operation against 30+ carriers.
Yes. Most general contractors require subcontractors to carry their own general liability and workers' compensation insurance. A GC's policy typically does not extend to cover subcontractors. We help subs get the right coverage to satisfy GC requirements.
Completed operations covers claims that arise after a job is finished — for example, if a structure you built causes injury or property damage weeks or months after project completion. This is one of the most critical and most overlooked contractor coverages.
Yes. Solo contractors and owner-operators can get general liability, commercial auto, and tools & equipment coverage. Workers' compensation is only required when you have employees, though some states have specific rules for sole proprietors.
An additional insured endorsement adds another party (like a GC or property owner) to your policy so they are protected from claims arising from your work. This is commonly required in construction contracts. We confirm the exact endorsement language required before you bind.
General liability covers physical damage and bodily injury claims. Professional liability (E&O) covers financial losses due to design errors, faulty workmanship claims, or professional mistakes. Design-build contractors and those offering consulting services typically need both.
Ohio, North Dakota, Washington, and Wyoming operate monopolistic state funds for workers' compensation, meaning employers must purchase coverage through the state fund rather than private carriers. We help contractors in these states navigate the state fund application process and secure all other coverages (general liability, commercial auto, etc.) through our private carrier network.
HOA & Condo Association Insurance FAQs
Master policies, D&O, fidelity bonds, and board liability questions.
8 questions in this section · 50 total questions
Yes. Most state statutes and virtually all CC&Rs require homeowners associations to carry a master insurance policy. Even if not legally required, operating without coverage exposes board members to personal liability and leaves the association vulnerable to catastrophic losses from property damage, lawsuits, or employee dishonesty.
Directors & Officers (D&O) insurance protects HOA board members from personal financial liability when they are sued for decisions made in their role. This includes allegations of mismanagement, failure to enforce CC&Rs, discrimination claims, breach of fiduciary duty, and wrongful termination of vendors or employees. Without D&O coverage, board members could be held personally responsible for legal defense costs and settlements.
The HOA master policy covers shared structures, common areas, and association-level liabilities. A unit owner (HO-6) policy covers the interior of an individual unit, personal belongings, and personal liability. The master policy typically insures from the studs out, while the unit owner policy covers from the studs in. Unit owners should review the master policy to understand exactly where association coverage ends and personal coverage needs to begin.
Yes. Board members can be personally named in lawsuits related to their governance decisions. Common claims include breach of fiduciary duty, failure to maintain common areas, discrimination, and misuse of association funds. D&O insurance is specifically designed to protect board members from these claims by covering legal defense costs and any resulting settlements or judgments.
A fidelity bond (also called crime coverage) protects the association against theft or dishonest acts by board members, employees, property managers, or volunteers who handle HOA funds. Many state statutes and governing documents require fidelity bond coverage equal to at least the association's total annual assessments plus reserves. Given that HOAs routinely handle significant reserve funds, this coverage is essential.
Associations should review their master policy annually, ideally 90 to 120 days before renewal. Key triggers for a mid-term review include major capital improvements, changes in replacement cost values, new state legislation, large claims, or changes in the number of units. An outdated appraisal is one of the most common reasons HOAs are underinsured at the time of a loss.
Major factors include the number of units, total insured replacement cost, building construction type (frame vs. masonry), location and catastrophe exposure (wind, hail, earthquake), claims history, age of the buildings, presence of amenities like pools or gyms, and the deductible structure. Associations with recent large claims or older roofs will typically see higher premiums.
In most cases, yes. An umbrella policy provides additional liability coverage above the limits of the general liability and D&O policies. For associations with pools, playgrounds, fitness centers, or high foot traffic in common areas, the risk of a large liability claim can easily exceed the underlying policy limits. Umbrella coverage is relatively affordable compared to the protection it provides.
Restaurant Insurance FAQs
Liquor liability, food trucks, business interruption, and more.
8 questions in this section · 50 total questions
Yes. If your restaurant, bar, or food truck serves, sells, or allows the consumption of alcohol on premises, you need liquor liability insurance. Most states require it by law, and landlords almost always require it in commercial leases. Liquor liability covers claims arising from injuries or damages caused by intoxicated patrons, including assault, property damage, and drunk driving accidents. Without it, a single alcohol-related incident could result in a lawsuit that shuts your business down.
Yes. Your commercial general liability (CGL) policy covers third-party bodily injury claims, which includes food poisoning and foodborne illness. If a customer gets sick from food served at your establishment and files a claim, your CGL policy would cover legal defense costs, settlements, and judgments up to your policy limits. We recommend carrying at least $1 million per occurrence and $2 million aggregate for most restaurants.
Personal auto policies do not cover commercial delivery activities. If your restaurant offers delivery using company vehicles, you need a commercial auto policy. If employees use their own vehicles for deliveries, you need hired and non-owned auto (HNOA) coverage added to your policy. Without proper coverage, an accident during a delivery could leave your business exposed to significant liability.
Restaurant insurance pricing depends on cuisine type, liquor sales percentage, seating capacity, delivery operations, and lease requirements. A fast-casual spot without alcohol pays dramatically differently than a full-service restaurant with a bar. Our Risk Calculator walks you through the factors, and we'll quote your specific restaurant against 30+ carriers.
Food trucks need a unique combination of coverages: commercial general liability, commercial auto insurance (for the truck itself), inland marine or equipment coverage for cooking equipment, workers compensation if you have employees, and potentially liquor liability if you serve alcohol. You may also need event-specific certificates of insurance depending on where you operate. We specialize in building food truck programs that cover all of these needs.
Yes. Business interruption insurance covers lost income and ongoing expenses (rent, payroll, loan payments) when your restaurant is forced to close due to a covered peril like a fire, storm damage, or equipment failure. It typically kicks in after a waiting period (usually 48 to 72 hours) and continues until you can reopen or for the policy period, whichever comes first. This coverage is critical because the average restaurant closure after a fire lasts several months.
Restaurants process credit card payments and store customer data, making them targets for data breaches and cyberattacks. Cyber liability insurance covers the cost of notifying affected customers, credit monitoring, forensic investigation, legal defense, and regulatory fines. POS system breaches at restaurants have increased significantly in recent years, and the average cost of a data breach for a small business is over $100,000.
Yes. We work with specialty carriers that underwrite restaurants with prior claims, losses, or lapsed coverage. While your options may be more limited and premiums higher, we can still find coverage. Having prior claims does not mean you are uninsurable. We review your loss history, identify what has changed, and present your risk to carriers that specialize in harder-to-place restaurant accounts.
Lessors Risk (Commercial Landlord) Insurance FAQs
LRO policies, tenant requirements, loss of rents, and portfolio coverage.
8 questions in this section · 50 total questions
A lessors risk only (LRO) policy covers the building owner for liability and property damage related to the structure, common areas, and landlord operations. The tenant's commercial policy covers the tenant's business operations, inventory, equipment, and liability arising from their specific trade. Both policies are necessary because neither one replaces the other. If a customer slips in a shared hallway, the landlord's LRO policy responds. If the same customer slips inside the tenant's store due to a spill, the tenant's policy responds.
When you are listed as an additional insured on a tenant's commercial general liability policy, you gain direct rights under that policy if a claim arises from the tenant's operations. This means the tenant's insurance company must defend and indemnify you alongside the tenant. Without this endorsement, you would need to file a separate claim or lawsuit against the tenant to recover costs. Every commercial lease should require tenants to name the landlord as additional insured and provide a certificate of insurance (COI) as proof.
Loss of rents coverage (also called business income or rental value coverage) reimburses you for rental income you lose when a covered peril, such as a fire or storm, makes your property uninhabitable or unusable. The coverage typically pays the rent you would have collected during the repair period, up to 12 months. Some policies also cover expenses you incur to expedite repairs. The limit should match at least 12 months of gross rental income across all occupied units.
Yes. A triple net lease shifts operating costs like property taxes, insurance premiums, and maintenance to the tenant, but it does not transfer the legal liability of building ownership. If someone is injured in a common area, or if the building suffers structural damage, the landlord is still the responsible party. An LRO policy protects the building owner's interest regardless of the lease structure. In fact, NNN leases often include language requiring the landlord to maintain property and liability coverage.
Most commercial landlords should carry a minimum of $1 million per occurrence and $2 million aggregate in general liability. However, many lenders, lease agreements, and property management contracts require higher limits. An umbrella or excess liability policy can extend your base limits to $2 million, $5 million, or $10 million at a relatively low incremental cost. We recommend reviewing your lease requirements, lender covenants, and the tenant mix to determine the right limit for your portfolio.
Yes. Many carriers offer portfolio or blanket LRO programs that cover multiple locations under a single policy. This approach often provides lower per-property costs, simplified administration, one renewal date, and blanket coverage limits that can shift between properties. Portfolio programs are especially common for landlords with five or more locations and work well for retail strip centers, office parks, and industrial portfolios.
If a tenant operates without insurance, the landlord faces significantly increased exposure. Any claim arising from the tenant's operations could flow up to the landlord through a lawsuit. Your LRO policy will still protect you for covered claims, but you may face higher deductibles, policy exclusions, or subrogation issues. Best practice is to require certificates of insurance at lease signing, set up automatic renewal tracking, and include lease language that allows you to purchase coverage on the tenant's behalf and charge it back if they lapse.
Standard LRO policies cover the building structure and landlord-owned improvements. Tenant improvements and betterments, meaning upgrades the tenant installs at their own expense, are typically covered under the tenant's commercial property policy. However, if the landlord funded the build-out or if the lease specifies that improvements revert to the landlord, those improvements should be scheduled on the LRO policy. We review each lease to make sure the correct party is insuring every component of the property.
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