Insurance requirements of home-based businesses

Are you among the increasing numbers that are finding opportunities running a business from home? The benefits are attractive: you can be your own boss, set your own hours and don’t have to worry about getting laid off … but you need to make sure you and your valuable property are protected. So, if you’ve recently become an entrepreneur running a home-based business or sell home products like makeup or candle arrangements for extra income, getting to know the gaps that may be hiding in your insurance coverage is very important.

Home Business insurance policies and eliminating coverage gaps
Most homeowners policies limit the amount of coverage available for property on the insured premises used primarily for business purposes. However, a Home Business insurance policy may help protect you, your income and give you security and peace of mind while you grow your business.

Coverage for your home business
The coverage under most Home Business insurance policies is similar to that of most Small Business insurance policies:

• Property Coverage — Includes coverage for losses to your building and premises, business personal property and contents.
• Liability — Covers damages to your business for losses to third parties from:
• Bodily Injury — People injured on your premises or by a product you manufacture or sell.
• Personal Injury — Violations of privacy, false imprisonment, wrongful eviction, etc.
• Advertising Injury — For losses due to alleged slander, libel, or copyright infringement by you or your employees.

Telecommuters
If you telecommute or work remotely for an employer, the insurance issues for a home office may be even more complicated. For example, you may be covered under your homeowners policy for property you own, such as your desk and filing cabinets, but your employer may be covered for loss to company-owned property such as your computer or smartphone. If a delivery person slips on wet steps at your home while making a business-related delivery, your employer’s policy might cover, your homeowners policy might cover, or you could find yourself in the middle between the two carriers, both of which may initially deny the claim. Bottom line: If you work remotely, be sure to check your homeowners policy and ask your employer to confirm what the terms and conditions of its policies are, to avoid finding that neither policy covers a loss after it’s too late.

A new opportunity
Many of us are re-evaluating our lifestyles and for some of us, operating a home-based business provides a new opportunity. Let’s get together — I can help make sure you have the information you need to select coverage you feel is appropriate for your situation. Call me today to set up an appointment.

Business Insurance - Employee Practices and Liability Insurance

If you are a business owner, you likely have business insurance. If you don't, regardless of what type of business you own, get it!

 

What is included in one's business insurance can vary significantly between providers. Many providers offer what is called a "BOP" (Business Owner's Policy). A BOP is a comprehensive package that has many types of coverage inside the policy; some of which apply to one's specific type of business, some of which may not specifically apply.

One VERY important aspect of coverage for businesses that have employees is Employee Practices and Liability Insurance (EPLI).

The Insurance Risk Management Institute defines EPLI as:

A type of liability insurance covering wrongful acts arising from the employment process. The most frequent types of claims covered under such policies include: wrongful termination, discrimination, sexual harassment, and retaliation. In addition, the policies cover claims from a variety of other types of inappropriate workplace conduct, including (but not limited to) employment-related: defamation, invasion of privacy, failure to promote, deprivation of a career opportunity, and negligent evaluation. The policies cover directors and officers, management personnel, and employees as insureds. The most common exclusions are for bodily injury (BI), property damage (PD), and intentional/dishonest acts. EPLI policies are written on a claims-made basis. The forms contain "shrinking limits" provisions, meaning that insurer payment of defense costs—which are often a substantial part of a claim—reduce the policy's limits. This approach contrasts with commercial general liability (CGL) policies, in which defense is covered in addition to policy limits. Although EPLI is available as a stand-alone coverage, it is also frequently sold as part of a management liability package policy. In addition to providing directors and officers (D&O) and fiduciary liability insurance, management liability package policies afford the option to cover employment practices liability (EPL). 

If you don't know whether your business insurance includes EPLI coverage, check with your insurance provider. Also confirm what level of coverage is carried.

For other helpful tips on business insurance or to review an option for your business, contact Farmers Insurance - The Wertzberger Agency at 913-383-3276 or email us.

Did you know your business vehicles need different coverage?

If you’re a small-business owner you know that your company vehicles provide not only transportation but also a consistently professional image and mobile marketing. But do you know that they also require a commercial insurance policy? It’s true: personal auto policies typically exclude coverage for vehicles used in your business. If you use vehicles to transport your employees, equipment or products, you probably need commercial coverage.

Farmers offers flexible coverage options that reflect the characteristics of your business and typically include:

• Bodily Injury: Covers bodily injuries (or death) to another for which you are legally responsible.
• Property Damage: Covers damages to someone else’s property for which you are legally responsible.
• Collision: Covers your vehicle when your car hits, or is hit by, another vehicle.
• Comprehensive: Covers your vehicle for losses resulting from incidents other than collision.
• Uninsured/Underinsured motorists: Covers you for bodily injuries, damages, or death caused by an at-fault uninsured or underinsured driver.
• Medical Payments: Covers medical expenses incurred by you and your passengers injured in an accident.

Avoid, reduce and mitigate potential claims
Whether you manage a few pickups or a full fleet of box trucks, you owe it to yourself and your business to learn as much as you can about our comprehensive commercial auto policy provisions. Farmers has a staff of highly trained loss prevention experts who can guide you through safety programs and provide supporting materials designed to help educate your employees. Let’s get together soon to review your coverage.