05/ 03/ 2004
by Jeffrey Moses
When it comes to insurance, every small business has individual needs. Events and items to be covered for a restaurant, for instance, will be significantly different than those a manufacturing plant or a home office needs.
There are, however, broad areas of coverage that apply to all types of businesses. The important thing is to make sure you have insured every aspect of your business that you need to. The checklist will at least help you be aware of what may need covered.
Events to be covered:
- Flooding
- Fire
- Windstorm (often requires additional policy in hurricane areas)
- Hail
- Lightning
- Earthquake (almost always requires additional coverage)
- Damage caused by aircraft
- Explosions (origins internal or external to business property)
- Arson
- Theft (by employee or non-employee, may require additional policy)
- Check fraud (by employee or non-employee, may require additional policy)
- Embezzlement (may require additional policy because of difficulty of proof)
- Death or disability of key employee or partner (often called “Key Man” insurance)
- Civil Authority losses, such as closure of airports and train stations in emergencies
- Errors and Omissions (“E & O” -- often requires additional coverage)
- Property damage, bodily injury or death caused by employees while on- or off-premises
- Vandalism
- Mudslide
- Sinkholes
- Roof collapse or damage
- Foundation collapse or damage
- Broken glass or damaged buildings and structures caused by riots, war or terrorism(may now require separate coverage for terrorism)
- Termite/insect/vermin damage
- Mold/fungus damage
Items to be covered:
- Buildings, roofing, internal walls, foundations, attached structures
- External structures, fences, signs, improved roads, bridges, etc.
- Carpeting, furniture, drapes, decorations, etc.
- Office equipment owned and leased (often requires additional coverage for expensive computer systems, phone systems, etc. Check to make sure that damage by lightning and power fluctuations is covered.)
- Security systems (Yes, these can be damaged too, or even stolen!)
- Communication equipment other than telephones, including two-way radio systems and satellite dishes
- Vehicles, machinery, spare parts for machinery, maintenance supplies
- Furnaces, air-conditioning equipment, ductwork, boilers (boilers often require additional policies)
- On-site and off-site stored records
- Cash on hand, bonds and stocks
- Business inventory (on display or in storage)
- Intellectual property such as trademarks and copyrights (usually requires additional policies)
Also to be included, of course, are loss of income and loss of use caused by any of the events listed above.
If your industry associations or your insurance representative has insurance checklists specific to your type of business, they can be extremely helpful in making sure that you obtain complete coverage for all eventualities.
