Business Owner's Coverage Policies

A business insurance policy is necessary to protect a business in cases of liability, fire, theft, vandalism and even against the death or illness of the owner. Most businesses are required by state or federal laws to have in force an insurance policy before they can be open for business. Many home businesses are also required to have business insurance coverage but it can be actually attached to their homeowner’s policy if added correctly to their coverage. Such home businesses may store products at home in a garage and may not realize that this would be considered inventory and would not be covered under a homeowners policy unless attached through a business insurance coverage.

A business insurance policy can even cover the owner or valuable person in the company under a clause or policy called the key person. A key person is someone who is absolutely needed to operate the business and the business would suffer with the illness or death of this individual possibly even causing the business to have to shut down or be sold. A chef at a restaurant could be considered a key person if the business is built around his reputation.

Liability coverage is extremely important to a business. If a customer fell entering a business they could sue the business for damages. Fire could damage not only the structure of a building but could damage or destroy inventory, important files, and business supplies and furniture. A broken window without business insurance coverage could get expensive.