Small Business Insurance

Business Owners Policy (Small Business)

Qualifications:

Less than 100 employees

Revenues of $3 million or less

Business occupying up to 25,000 sqft

Owned buildings up to 100,000 sqft and less than six stories

Majority of the operation is located on the premises

Standard deductible is $500

Building

Business Personal Property

Additional Coverage

Liability

open-peril policy

Building

Covered Property:
  • Building
  • Additions under construction and completed
  • Permanently installed machinery and equipment
  • Fixtures
  • Extra cost to get building up to new code ($10,000 limit)
Covered Perils:
  • Liquid material escape- Covers cost to repair/replace property and system in which the liquid escaped from.
  • Collapse caused by building glass breakage, hidden decay, hidden insect/vermin damage, weight of people/personal property, or weight of rain/snow
  • Fire extinguisher system discharge

Exclusions that can be added:

  • Equipment Breakdown- Repairs/replaces damage caused by equipment breaking down
  • Utility Services- direct damage endorsement – Covers property damaged by utility interruption

Exclusions that can be added through another policy:

  • Land

Other Business Property

Covered Property:
  • Property owned and used by the insured in the business
  • Property of others in the insured’s care, custody, or control (not customers’ property)
  • Tenants’ improvements and betterments
  • Leased personal property that the insured has a contractual responsibility to insure
  • Exterior building glass
  • Animals being boarded
  • Electronic data- Replaces/restores software/hardware up to $10,000
  • Portable fire extinguisher equipment
  • Fire extinguisher systems recharge expense- Pays up to $5,000/occurrence to renew the system after use and damage to property from accidental discharge
  • Personal property used to maintain/service building(s)
  • Covers property removed from the property because of a covered peril and stored at another location for 30 days
Covered Perils:
  • Collapse caused by building glass breakage, hidden decay, hidden insect/vermin damage, weight of people/personal property, or weight of rain/snow
  • Liquid material escape- Covers cost to repair/replace property and system in which the liquid escaped from.

Exclusions that can be added:

  • Equipment Breakdown- Repairs/replaces damage caused by equipment breaking down
  • Utility Services- direct damage endorsement – Covers property damaged by utility interruption
  • Outdoor fences, signs ($1,000 if attached to the building), trees, shrubs, and plants
  • Outdoor signs not attached to buildings
  • Outdoor radio or television antennas/satellite dishes

Exclusions that can be added through another policy:

  • Aircraft
  • Motor vehicles
  • Watercraft while afloat, including motors, equipment, and accessories
  • electronic data
  • Animals (other than animals owned by others and being boarded)
Exclusions
  • Contraband

    Additional Coverage

    Additional Coverage is subject to coverage limit In the event of covered perils destroying the premises this extra coverage will help:
    • Debris removal- 25% of the total loss payment (plus applicable deductible). An additional $25,000 may be available if the original debris removal payment is not sufficient
    • Business income up to a year: rev – exp. If civil authorities are the peril, then coverage begins after 72 hours and lasts up to 4 weeks. If a dependent property (eg. supplier, distributor) cannot be accessed, then coverage begins after 72 hours and lasts until the dependent property is should recovered or reaches a $5,000 limit
    • Extra expense up to a year – This covers any extra expenses necessary to keep the business running.
    • Forgery and alteration up to $2,500
    • Money orders and counterfeit money transacted to the business up to $1,000
    • Pollutant clean up and removal up to $10,000/year
    • Glass expenses- Covers temporary solutions to block openings if repair/replacement of glass is delayed.
    • Fire department service charges up to $2,500
    • Covered Perils
    • Fungus, mold, wet rot, dry rot, and bacteria damage is covered up to $15,000/year to remove and repair/replace damaged property
    Exclusions that can be added:
    • Utility Services- time element endorsement – Covers business income or extra expenses to keep the business running in the event of utility service interruption
    • Employee Dishonesty- Covers dishonest employee (eg. stealing) loss of business personal property, money, and securities up to declaration limit per occurance. Their is no coverage for a subsequential event from an employee(s) that already comitted this action or if the policy has been terminated for over a year.
    • Money and Securities- Covers loss of money/securities from theft, disapearance, or destruction while it is at a bank/savings institution, described premises, or in transit between any of these places.
    Exclusions that can be added through another policy
    • Accounts, bills, food stamps, other evidences of debt, accounts receivable, and valuable papers and records
    Exclusions
    • Losses resulting from the enforcement of a building ordinance or law
    • Earth movement (Earthquake, sink hole, does not include a fire or explosion resulting from earth movement)
    • Government action (government ordering demolition of a building)
    • Nuclear hazard
    • Damage caused by failure of power or other utility services occurring away from the insured’s premises (does not apply to loss or damage to computers and electronic media and records)
    • War and military action
    • Water, including flood, sewer backup, mudslides, or seepage of ground water
    • Mold, wet rot, dry rot, and bacteria, except as provided as an additional coverage
    • Explosion of any steam boilers, pipes, engines, or turbines
    • Dishonest or criminal acts of employees/insured
    • Pollution (unless the release, discharge, or dispersal is caused by a
    • Damage caused by insects, birds, rodents, or other animals
    • Voluntarily parting with property if induced to do so by fraud or a trick
    • Protective safeguards endorsement – Requires insured to maintain protective devices/services listed for coverage to be valid. Other conditions may apply.

    Liability

    Bodily injury (BI) and property damage (PD) are covered on a per occurance basis up to the limit amount. They cover everything except for the exclusions below:

    BI and PD Liability exclusions that can be added through another policy:

    • Rented property that was not damaged through fire or explosion
    • related to liquor, but only for insureds whose business is manufacturing, distributing, selling, serving, or furnishing alcoholic beverages;
    • for obligations under workers’ compensation, disability benefits, unemployment compensation, or similar laws;
    • arising out of pollutants, including associated cleanup costs;
    • arising out of the ownership, maintenance, and use of aircraft, autos, and watercraft;
    • arising from rendering or failing to render professional services;
    • for damage to property the insured owns, rents, or occupies, or property in the insured’s care, custody, or control
    BI and PD Liability exclusions:
    • arising out of expected or intended injury;
    • assumed under contracts or agreements;
    • for BI to employees that arises out of and in the course of their employment with the insured;
    • arising out of the use of mobile equipment in, or while practicing or preparing for, any prearranged race, speed or demolition contest, or any stunting activity;
    • for business liability or medical expenses resulting from the hazardous properties of nuclear materials.

    Personal and advertising injury covers one person/organization up to its limit amount and includes:

    • False arrest, detention, or imprisonment
    • Malicious prosecution
    • Wrongful eviction from a place a person occupies, by or on behalf of its owner, landlord, or lessor
    • Wrongful entry into a place a person occupies, by or on behalf of its owner, landlord, or lessor
    • Invasion of the right of private occupancy of a place a person occupies, by or on behalf of its owner, landlord, or lessor
    • Oral or written publication of material that slanders or libels a person or organization; disparages a person’s or organization’s goods, products, or services; or violates a person’s right of privacy
    • Use of another’s advertising idea in the insured’s advertisement
    • Infringement of copyright, trade dress, or slogan

    Full covered locations:

    • Premises
    • U.S. & Canada
    Limited Covered Locations:
    • Goods, services, and insured a normally made in the U.S./Canada
    • Activities from the insured away from home on business
    • Offenses that take place through the internet or other communication.
    Supplementary payments (Expenses the insurance company incurs)
    • Up to $250 for the cost of bail bonds
    • Reasonable expenses the insured incurs at the insurance company’s request to assist in investigating or defending a claim or suit, including $250 per day for lost earnings because of time off from work
    • Costs the insured is required to pay because of a lawsuit
    • Prejudgment interest the insured is required to pay
    • Interest that accrues after a judgment and before it is paid

    Medical expenses (paid within one year per person)

    • First aid when an accident occurs
    • Medical services
    • Funeral services
    Medical expenses will generally not be paid for the following:
    • Any insured (does not include the insured’s volunteer workers)
    • Anyone hired to work for or on behalf of any insured or any insured’s tenant
    • A person who is injured on a part of the premises the insured owns or rents and that the injured person normally occupies
    • A person (whether or not an employee of the insured) whose injury calls for benefits payable under a workers’ compensation, disability or similar law
    The following exclusions apply specifically to personal and advertising injury losses. Not covered are

    personal and advertising injury:

    • that is intentional;
    • that arises out of oral or written publication of material that was first published before the beginning of the policy period;
    • that arises out of a criminal act committed by or at the direction of any insured;
    • arising out of the failure of goods, products, or services to conform with advertised quality or performance;
      arising out of a wrong description of the price of goods, products, or services;
    • committed by insureds in the business of advertising, broadcasting, publishing, telecasting, designing websites, or providing internet search, access, content, or service; arising out of infringement of copyright, trademark, patent, trade secret, or other intellectual property rights; and
    • arising out of a criminal act committed by or at the direction of the insured.
    Coverage can be added
    • Hired auto and nonowned auto liability endorsement- Covers bodily injury and property damage caused by leased, rented, borrowed, or vehicle that the insured doesn’t own.

    *make sure to know the conditions of your policy