A relatively generic business office is the primary or only premises for numerous types of small service businesses, including, for example, employment, travel, collection, insurance, advertising and other agencies as well as for brokerage and consulting firms.
Other service businesses—such as hair salons, Internet service providers or photographers—require a substantial amount of service-
Both types of businesses have risks in common. For example, all are at risk of lawsuits claiming that they failed to provide a service as promised or expected.
For many types of service businesses, the most cost effective and efficient way to obtain property and liability coverage is with a Businessowners Policy (BOP) tailored to their specific industry. Although marketed under a number of different names, these policies will typically have provisions similar to the property insurance and liability insurance sections of the BOP.
If your business owns the building it occupies, the policy covers that property. If your business rents or leases its premises, the policy provides coverage for tenants' improvements and betterments. Improvements and betterments are fixtures, alterations, installations or additions that you have put into the space that cannot legally be removed from the landlord’s premises.
Your policy will probably include two coverages that can be critical to enabling your business to recover after a disaster: Business Income and Extra Expense Insurance (also known as Business Interruption Insurance). Business Interruption Insurance helps pay ongoing expenses while your business is unable to function after a loss and also helps make up for lost profits. Extra Expense Coverage helps you recover as quickly as possible by paying extra expenses caused by the loss—such as rent for temporary quarters.
The BOP includes as part of the basic policy two types of coverage related to electronic data.
Computer Operations Interruption Coverage pays for business income lost and extra expenses incurred as a result of many computer problems. Electronic Data Loss Coverage pays the cost to replace or restore electronic data destroyed or damaged as the result of causes of loss named in the policy. These include a computer virus or harmful code. For more coverage, there are several endorsements you can choose to add. You should discuss your needs with your agent.
Coverage can easily be added to these policies for such items as special equipment, fine arts, valuable papers and records, and accounts receivable.
The more high-