There are many coverages on a business policy. Here we will take a look at a few of them:
Business Income-reimbursement for lost income if you can’t operate your business due to a covered loss.
Example: a 4 alarm fire rips through your office building wiping out your office. You have no physical office to see “clients”, no files, etc. While you are restoring your business, business income expense would reimburse you for your loss of income.
Tenant Improvements and Betterments-these are the alterations you make to the space you occupy. They need to be insured if you wnat your store/office to look the same after the fire (or other event). The Owner/Landlord does not usually insure the improvements.
Business Personal Property-supplies, inventory, office furniture,etc. Many business owners never update their policy after they begin their business and are woefully underinsured.
Completed Products and Operations Liability- this applies to businesses such as :
Auto Repair or Contractors
You bring your vehicle in for an oil change and after you leave the shop the vehicle begins to smoke and breaks down. The vehicle is towed to a repair shop where it is discovered that the oil was not replaced during the oil change. The repair shops liability coverage will cover the damages to your vehicle.
The plumber installs a new dishwasher and 2 weeks later you discover there is water leaking and your hardwood floor is ruined. Upon inspection it is discovered that a water line was installed improperly. A claim would be filed against the plumber’s insurance policy for damages.
The small business owner needs to make sure they have enough coverage for a large loss.
