SMALL BUSINESS INSURANCE & RISK MANAGEMENT GUIDE
Desirable Coverages
Some types of insurance coverage, although not absolutely essential, will
greatly add to the security of your business. These coverages include business
interruption, crime, glass, rental, boiler and machinery insurance.
Business Interruption Insurance
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You can purchase insurance to cover expenses that would continue
if a fire shut down your business--such as salaries to key employees taxes
interest depreciation and utilities as well as the profits you would lose.
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Under properly written contingent business interruption insurance you can also
collect if fire or other peril closes down the business of a supplier or
customer thus interrupting your business. |
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The business interruption policy provides payments for amounts you
spend to hasten the reopening of your business after a fire or other insured
peril.
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You can get coverage for the extra expenses you suffer if an
insured peril seriously disrupts but doesn't actually close your business.
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When the policy is properly endorsed you can get business
interruption insurance to indemnify you if your operations are suspended
because of failure or interruption of the supply of power light heat gas or
water furnished by a public utility company.
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Crime Insurance
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Burglary insurance excludes such property as accounts fur articles
in a showcase window and manuscripts.
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Coverage is granted under burglary insurance only if there are visible marks of
the burglar's forced entry. |
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Burglary insurance can be written to cover in addition to money in
a safe inventory merchandise and damage incurred in the course of a burglary.
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Robbery insurance protects you from loss of property money and
securities by force trickery or threat of violence on or off your premises.
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A comprehensive crime policy written just for small business
owners is available. In addition to burglary and robbery it covers other types
of loss by theft destruction and disappearance of money and securities. It also
covers theft by your employees.
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If you are in a high-risk area and cannot get insurance through
normal channels without paying excessive rates you may be able to get help
through the federal crime insurance plan. Your agent or state insurance
commissioner can tell you where to get information about these plans.
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Glass Insurance
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You can purchase a special glass insurance policy that covers all
risk to plate-glass windows glass signs motion picture screens glass brick
glass doors showcases counter tops and insulated glass panels.
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The glass insurance policy covers not only the glass itself but also its
lettering and ornamentation if these are specifically insured and the costs of
temporary plates or boarding up when necessary. |
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After the glass has been replaced full coverage is continued
without any additional premium for the period covered.
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Liability Insurance
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You can buy rental insurance that will pay your rent if the
property you lease becomes unusable because of fire or other insured perils but
your lease calls for continued payments.
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If you own property and lease it to others you can insure against loss if the
lease is canceled because of fire and you have to rent the property again at a
reduced rental. |
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This article is reprinted by permission of the SBA and The Travelers, Hartford, Connecticut.
For more information on SBA programs go to www.sba.gov