Topics: Agent Resources
If your client’s small business and/or employees are home-based, the short answer is yes; the company needs insurance above and beyond a standard homeowners policy, which is not designed to cover the specific needs of a business. As a matter of fact, many homeowners’ policies include exceptions for home-based businesses and will not cover any type of losses related to the business. A businessowners policy (BOP) is a type of commercial insurance that combines coverages that might be purchased separately. While each policy can be customized to meet the individual needs of the business, the standard coverage includes:
This portion of the policy covers a business from a variety of claims, including bodily injury or property damage third parties experience as a result of something the company or employees did or failed to do. It provides coverage for medical care for any injuries and damage to the property. Additionally, general liability can also cover injury caused by advertising, like libel or copyright infringement. Even if employees work remotely, general liability is recommended for those unforeseen incidents that harm individuals or business property.
This doesn’t just cover commercial buildings the company rents or owns, but also the business equipment employees use while working remotely, like company-owned computers or tools. Property insurance covers any accidental cause of loss unless the loss is specifically excluded within the policy language.