To determine your business insurance needs, you should begin with an
analysis of your property and your risks. Your property is the building and
equipment you own. Your risks are the financial responsibilities you have
for the people and property within your business.
Even if the law does not require your business to carry insurance, you may
want to purchase coverage to protect you, your property and your assets.
You may be able to purchase a package policy that includes several types of
insurance. For instance, property, liability and automobile coverage could
make up a package policy. Usually, the premium for a package policy costs
less than the total cost of premiums for the individual coverage.
Property insurance may be one of the most important types of insurance in
terms of financially protecting the property and physical assets of your
business. There are three basic types of property coverage. You will want
to discuss these coverages carefully with your agent to make sure you un-
derstand the differences.
Basic Form: Includes losses for such things as fire,
lightning, windstorm, hail, and explosion. The exact
covered losses are specifically listed in the policy.
Under a basic policy you are insuring for only specific
Broad Form: Includes basic form coverage plus
coverage for losses caused by such things as collapse of
roof due to weight of ice or snow; or damage caused by
accidental discharge of water or steam. Covered causes
of loss are specifically listed in the conditions of the policy.
Insuring Your Business:
Property & Liability Coverage
Meeting Your Business
There are three basic
types of property
coverage which can
protect your business.
Special Form: Sometimes referred to as all risk because it covers all
direct physical losses (everything) except conditions specifically ex