Damage to business owner's property. A business
owner's policy covers the same kind of perils that the typical homeowner's policy does,
but it does so for business property.
In addition to this coverage, you can receive coverage-at
extra cost-for income lost as a result of the business's property.
Bodily injury and property damage liability. This
is probably the most important part of the business owner's policy certainly so if
you have business visitors in your home workplace. It will cover injuries to your business
visitors, whether they were injured in the "personal" or in the
"business" portion of your home.
Another type of coverage that you can add to a business
owner's policy for extra cost is for product liability. If your business includes the
selling of a product, you may be sued if someone is injured using the product. This can
happen even if you just distributed the product, and had nothing to do with its design or
Depending on how potentially dangerous the product is, who the user will be,
and in what part of the country it will likely be sold or used, the cost for this
additional coverage could be reasonable or extremely expensive.
Commercial policies. A business owner's policy is
often the most economical way to protect against a broad range of risks that may befall
your business. This type of policy is available for many specified types of lower-risk
small businesses (such as retail shops and professional offices).
If your business does
not qualify for a business owner's policy, such as if you operate a restaurant or
manufacturing business, you'll need what is known as a commercial policy.
A commercial policy is usually more expensive than a
business owner's policy, but is more flexible. It's also more difficult to understand,
since unlike a business owner's policy, a commercial policy is written to protect against
certain basic risks, with protection against other risks to be accomplished through the
purchase of additional coverage, based the specific needs of your business.
Because obtaining adequate coverage under a commercial
policy depends on identifying, and specifically insuring against all risks beyond those
covered in the core policy, your selection of an insurance agent or broker becomes more
important if your business needs a commercial policy.
In this case, it is vital that your
agent or broker is familiar with the operation of your business, as well as knowledgeable
about the commercial policies that he or she offers.