• Business Coverage FAQs
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  • 1. What type of insurance do I need if I start an in-home business?
     

    If you decide to start a home-based business, you should review your insurance needs immediately with us. You have three choices: (1) endorsements to your existing homeowner’s policy; (2) a special in-home business policy; or (3) a small business owners package policy called a BOP. Options 2 and 3 are recommended. Why? Because in-home businesses can involve MANY risks, including increased liability risks if you have customers and suppliers coming to your home business site. Also, there may be special coverages needed for equipment, materials, inventory, business interruption, etc.

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  • 2. Why do I need liability insurance?
     

    Good liability risk management can reduce the chances that your business will be sued, but it can never eliminate the risk entirely. You or a member of your organization can make a mistake that injures someone or damages property. Your mistake could harm the reputation or interfere with the privacy of a customer, client, competitor or member of the general public. When such injuries occur, you may be legally liable to pay damages to someone who suffers a loss due to your actions or inaction.

    Depending on the degree of harm and the number of people injured and/or value of property damaged, a lawsuit could bankrupt your business. Even if your organization is ultimately cleared of any wrongdoing, a determined plaintiff can keep you tied up in legal proceedings for a long time, entailing significant cost to defend yourself. Liability insurance pays the cost of your defense and protects your assets.

    For more details: http://www.iii.org/publications/insuring-your-business-small-business-owners-guide-to-insurance/specific-coverages/liability-insurance

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  • 3. Do I need professional liability insurance?
     

    Professional liability insurance is a specialty coverage for service providers such as lawyers and consultants. Professionals that operate their own businesses need professional liability insurance in addition to an in-home business or businessowners policy. This protects them against financial losses from lawsuits filed against them by their clients for negligence or failure to perform contracted services as expected.

    For more details, click: http://www.iii.org/article/do-i-need-professional-liability-insurance

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  • 4. What does a Businessowners Policy (BOP) cover?
     

    Insurance companies selling business insurance offer policies that combine protection from all major property and liability risks in one package. (They also sell coverages separately.) One package purchased by small and mid-sized businesses is the businessowners policy (BOP). Package policies are created for businesses that generally face the same kind and degree of risk. Larger companies might purchase a commercial package policy or customize their policies to meet the special risks they face.

    For a list of BOP coverages, click: http://www.iii.org/article/what-does-businessowners-policy-bop-cover

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