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Policies In-home business policy The insurance industry has responded to the growing number of home-based businesses by creating in-home business insurance policies. For about $200 per year you can insure your business property for $10,000. General liability coverage is also included in the policy. A business owner can purchase anywhere from $300,000 to $1 million worth of liability coverage. The cost of the liability coverage will depend on the amount purchased. If your business is unable to operate because of damage to your house, your in-home business policy will cover lost income and ongoing expenses such as payroll for up to one year. The policy also provides limited coverage for loss of valuable papers and records, accounts receivable, off-site business property and use of equipment. In some cases, the companies that offer these policies require that you purchase your homeowners and auto policies from them. Business Owners Package Policy (BOP) Created specifically for small businesses, this policy is an excellent solution if your home-based business operates in more than one location or manufactures products outside the workplace. A BOP, like the in-home business policy, covers business property and equipment, loss of income and extra expenses, and liability. However, these coverages are on a much broader scale than the in-home business policy. Automobile coverage If you are using your automobile for business activities--transporting supplies or products or visiting customers--you need to make certain that your automobile insurance will protect you from accidents that may occur while on business. Important exclusions: Another coverage concern is if your automobiles use special paint or graphics. The new 2000 Homeowner's Policy 3. "Business" means: a. A trade, profession or occupation engaged in on a full-time, part-time or occasional basis; or b. Any other activity engaged in for money or other compensation, except the following: (1) One or more activities, not described in (2) through (4) below, for which no "insured" receives more than $2,000 in total compensation for the 12 months before the beginning of the policy period; (2) Volunteer activities for which no money is received other than payment for expenses incurred to perform the activity; (3) Providing home day care services for which no compensation is received, other than the mutual exchange of such services; or (4) The rendering of home day care services to a relative of an "insured". 2. "Business" a. "Bodily injury" or "property damage" arising out of or in connection with a "business" conducted from an "insured location" or engaged in by an "insured", whether or not the "business" is owned or operated by an "insured" or employs an "insured". This Exclusion E.2. applies but is not limited to an act or omission, regardless of its nature or circumstance, involving a service or duty rendered, promised, owed, or implied to be provided because of the nature of the "business". b. This Exclusion E.2. does not apply to: ... (2) An "insured" under the age of 21 years involved in a part-time or occasional, self-employed "business" with no employees. |
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| Not only are policy forms, clauses, rules and court decisions constantly changing, but forms vary from company to company and state to state. This material is intended as a general guideline and might not apply to a specific situation. The authors, LunchTimeCE, Inc., CEfreedom, and Insurance Skills Center, and any organization for whom this course is administered will have neither liability nor responsibility to any person or entity with respect to any loss or damage alleged to be caused directly or indirectly as a result of information contained in this course. |
