Business Protection Bulletin

A key step to implementing any new workplace program successfully is to gain complete acceptance by employees. That means not only must everyone on the job accept the changes, they truly must embrace them for the changes to really take hold. The best way to achieve that kind of commitment is to make the changes a part of your corporate culture. Mostly everyone would agree that no program is more important to make a part of your culture than a safety program.

The most effective way to convey a message to the group is also the most simple: Through language. Every organization has its own language, including terms that are common to everyday practices. Safety terms will become part of your company’s culture when they become part of every facet of the job. Workplace safety practices need to be communicated, and enforced. Safe as well as unsafe behaviors need to be outlined and posted, where all employees have an opportunity to observe them. It is critical that new employees be given a course concerning safety procedures, and understand fully the consequences of ignoring them.

In addition to employees understanding safety guidelines, it should become common practice and custom to carry out the safety rules. An organization’s customs are the accepted methods for getting things done on a regular basis. Although you might have clearly explained the consequences for violating safety practices, this is not always enough to ensure compliance. Compliance can be especially difficult for workers who have been on the job for a long time.

Long-term employees often develop a rhythm — a system of shortcuts, which helps them complete tasks quickly and efficiently. Sometimes the practices they use involve risks, but they avoid any adverse effects because they understand the risks, what kind of threat they pose, and how to countermand those threats. Often times, these workers continue to operate below the radar and management believes they are following correct procedures. However, they could be undermining any attempt to incorporate safety as part of the organization’s culture, because junior employees often mimic their behavior.

The best way to ensure compliance to safety guidelines is through behavior modification. This is a management technique that uses both positive and negative reinforcement to instill proper safety procedures. Employees are either rewarded in a tangible, visible way for promoting safety; or they receive negative consequences for ignoring safety practices. The best safety incentive an employer can offer is a monetary incentive. With monetary incentives, employees are given a bonus for completing the job without any safety violations. On the other hand, they are fined for unsafe behavior. The dollar amount of the reward or fine doesn’t have to be large to be effective; the fact that a behavior results in either a good or bad consequence is what motivates. The motivation is reinforced by the fact that employees are watching each other and more importantly, comparing.

Last but not least, there needs to be a clear indication that safety is a No. 1 priority. There should be an active safety committee and participation at meetings should be encouraged. When employees observe hazards, they need organized procedures to report and correct the dangerous situation. Most importantly, the outcome should be that the danger is eliminated and everyone on the job site must know how it has been corrected, especially if the correction required instituting a new procedure. It is extremely important that employees see positive results from their safety procedures, so that they will continue to be diligent in their future safety efforts.

Most business managers and owners are well aware of the threat of loss from outsiders, and use a variety of methods to reduce this risk. From locks on the doors, to security guards and dogs, to complex electronic burglar alarm systems, many preventative steps are taken. However, it is often the case that less attention is dedicated to reducing the risk of theft by an insider. No one wants to believe that an employee would defraud the company of money deliberately. Most people want to trust their employees, and rightly so. But it only takes one bad apple to do significant damage. Depending on the person’s position within the company, and the length of time the theft continues, substantial losses can result. Business owners often have a tendency to believe “it can’t happen here.”� Unfortunately, employee fraud is quite common. Furthermore, no risk reduction measures can be guaranteed to keep it from ever happening or detect every instance.

Having said that, loss control experts recommend two general approaches to reducing vulnerability to theft by insiders: Measures to decrease the probability that employees will commit the crime, and measures to increase the perceived probability of discovery and punishment. Below are seven tips to help with both approaches:

1. Institute an anti-fraud policy. Many employers wrongly assume they don’t need to discuss insider theft, since their employees know it is wrong. But experts say a strong, written anti-fraud policy, published in the employee handbook and/or posted on employee bulletin boards, helps prevent insider theft. The written policy reinforces the employer’s intent to maintain an honest, ethical environment, as opposed to one where it is regarded as common practice to steal from the employer.
2. Ask employees to report suspected fraud, and provide guidelines for reporting fraud. Employees need to understand how to report any suspicion of fraud or theft. Honest employees will usually report fraud when there is a good policy for doing so. They are more likely to say nothing if they are not sure how to report the suspicious behavior of a co-worker.
3. Maintain a business climate of loyalty and trust. Expectations influence behavior. When you expect employees to steal, some are more likely to do so, reasoning that there is no point in behaving honestly if they are already suspected of being dishonest. Maintaining an atmosphere in which employees feel trusted and valued and are rewarded for loyalty helps prevent insider theft.
4. Encourage ethical business practices. The typical employee thief is often a first-time offender who rationalizes his or her behavior to avoid having to face up to their criminality. Employees who have a weak moral character are more likely to act on it in an environment where they see the business engaging in unethical practices. When the company promotes and rewards ethical business practices, the risk of insider theft goes down.
5. Compartmentalize job functions. When the same person both approves and pays invoices, it is especially easy for a dishonest employee to submit bogus invoices and then pay them. Compartmentalizing duties helps to prevent this type of scheme.
6. Ask your accountants to look for red flags that could indicate fraud. Among the methods accountants often recommend are accounting controls, built-in detection mechanisms, and reconciliation of records. Businesses increase the probability of discovery with frequent audits that include steps to uncover fraud. Make sure that accountants understand that you view the discovery of insider theft as an aspect of their duties and services. Utilize your accountants to survey either all employees or randomly chosen employees from time to time, asking whether they are aware of any misappropriation of company money, property, or resources.
7. Look into any tips about employee fraud. Many dishonest employees are first brought to their employer’s attention as a result of a tip from an unhappy spouse or significant other. These tips should be investigated objectively. Sometimes employers ignore such tips, because they trust the employee in question, only to find out later that the tip was accurate. In such cases, the amount of the theft could have been lessened by taking the initial tip seriously.

In summary, to reduce the risk of insider theft, the employer’s position should be one of trusting employees in general not to steal, while at the same time being proactive about measures to help keep workers honest. Most employees will never engage in schemes to defraud, but unfortunately, there are always some who will. The dishonest employees are often the very people the employer would be least likely to suspect.

It’s not easy being an employer. The business must offer competitive wages and benefits without over-paying. It must keep employees happy but still maintain workplace discipline. It must protect its customers and its assets without seeming to distrust its employees. Without being overbearing or acting as a strict parent, it must ensure that employees are doing their work and doing it well. Many employers, using modern technology, are keeping an eye on workers — literally. A 2007 study by the American Management Association and The ePolicy Institute revealed that:

• 66% of employers monitor employees’ Internet connections
• 65% use software to block employees’ access to some Web sites
• 43% monitor employees’ e-mail
• 45% monitor the time employees spend on the phone and the numbers they call
• 16% record employees’ phone conversations
• 9% monitor voice mail messages
• 7% monitor employees’ job performance using video surveillance

Also, in certain industries employers search workers’ workstations and lockers, perform drug tests and physicals, investigate their backgrounds, and even monitor their activities outside of work. When an employer disciplines or fires a worker based on information it learned through one of these methods, the worker might become angry enough to sue the employer for invasion of privacy. Although federal and state laws generally permit employers to monitor workers’ activities and use of employer property, some suits succeed and all of them divert financial and human resources away from the employer’s main business. There are several things employers can do to avoid this.

• Establish a workplace policy about non-business phone and Internet use, and include it in the employee manual. The policy should describe the extent to which the employer will monitor phone and Internet use, if any, and the consequences should employees violate the policy. Ensure that employees are aware of it by discussing it at staff meetings and asking them to document that they have read it.
• Be careful about audio recording conversations. Although state and federal laws generally permit employers to use video monitoring of employees, some restrict the ability to make audio recordings or to listen in on conversations. Employers should become familiar with the wiretapping laws in their states before using audio monitoring.
• Keep employee e-mails confidential. Employers have the right to monitor their employees’ use of the business e-mail system, but making e-mails public (absent some legal or business requirement) might violate employee privacy rights.
• Include in the employee manual a written policy regarding employer searches of desks, workstations, and lockers. This should describe the employer’s right to conduct searches, the reasons it may do so, and the consequences should an employee refuse to cooperate. Conduct searches only when absolutely necessary for business or legal reasons, and take care to respect the employee’s dignity by doing the search out of the view of other employees.
• Perform drug tests for legitimate business reasons and at appropriate times, such as during the hiring process and following a workplace accident. If the employer will administer random drug tests, it should have a written policy stating as much in the employee manual and it should conduct the tests with as little privacy infringement as possible.
• Obtain a job applicant’s written consent for a background check, and investigate only those factors relevant to the position. For example, a credit check might be appropriate for a position that requires handling money.
  Keep employee information safe from individuals outside the company. Instruct managers and staff not to discuss personnel matters with outsiders and employees who do not need to know the information.

Employers must run an efficient operation, maintain a safe workplace free of harassment, make employees feel comfortable in their work, and make a profit. Following these steps will reduce the chances of employee lawsuits and allow the business to focus on its core mission.

Every business goes through different cycles of profit and loss. This means that your risks and potential exposures are being affected similarly. At the same time, Commercial insurance coverage is also evolving and changing. Nothing in either your business or the insurance industry remains static. This is why you should re-evaluate your insurance coverage at least once a year. A regular insurance audit will help you plug any coverage holes that might impact your bottom-line severely should an unexpected loss occur.

Ask yourself: How much risk are we prepared to accept for our business? Essentially, anything that you are not prepared to take on needs to be covered by suitable insurance coverage. To measure the amount of risk in evaluating the insurance needs of your company, there are a number of key areas you need to examine — in conjunction with one of our knowledgeable insurance agents. The primary areas you should re-evaluate annually are:

General Liability. How much liability protection does your company currently require? The amount of coverage you had purchased previously was probably adequate at the time, but remember: Your business has changed since then and so has your liability exposure. What was suitable for your needs last year might no longer be sufficient if your company has grown and expanded. The larger your growth, the more you become exposed to potential, increased, and significant liability.

Property Insurance. Business property evaluations go up and down as commercial real estate values fluctuate. You could now be paying too little or too much for the necessary coverage. The same applies to your equipment, machinery, and your inventory. Adding or subtracting in these three areas, while factoring in appreciation or depreciation, can affect not only the premiums you pay, but also your overall Property insurance coverage in the event of a significant loss, such as a fire or natural disaster.

Workers Compensation. The premium you pay is largely dependent on the roles of each and every employee — from the shop floor to your managerial staff. If the roles of your personnel have changed relative to how your business has grown, shrunk, or evolved, then you need to re-evaluate these changes relative to the premium rate you pay for each worker. The premium cost changes and/or differences can be substantial.

Business Interruption Insurance. You might have enough insurance to get your business re-built and your equipment replaced in the event of a disaster, but did you also factor in your business operating expenses? Many companies neglect that part of the equation and fail to develop a disaster recovery plan. Even if your company has a plan, what about the vendors that are key to the survival of your business? Your own business might be fine, but in some other part of the state or country, a key manufacturer or supplier could get nailed. Did you know that you could extend your coverage to cover this circumstance, too?

Insurance Protection of Executives. The size of your company doesn’t matter. If you have employees, you can face claims for sexual harassment or wrongful dismissal. You might not have considered the need to purchase Employment Practices Liability insurance before, but if your company has grown, that expansion has increased your risk to potential claims. Similarly, if you sponsor a 401(k) plan for your employees, and its performance has not met expectations or an employee feels the investment was mismanaged, do you have adequate Directors & Officers Liability to handle such claims?

Summary. To safeguard your business from potential risk, an annual insurance audit is a must. You might discover that changes in your business might have exposed you to new risks. Likewise, insurance premiums are a significant expense, and you might find that you are paying too much or covering exposures that are no longer relevant.

The purpose of third-party coverage in an Employment Practices Liability (EPLI) policy is to protect an organization and its employees from accusations of wrongful acts committed against customers, clients, vendors, and suppliers. Some EPLI policies also cover wrongful acts committed by third parties against the insured’s employees.

Harassment and all forms of discrimination are covered under wrongful acts. Discrimination claims include discriminatory practices against a person based on their race, religion, age, sex, national origin, disability, pregnancy or sexual orientation. Harassment involves unwanted sexual advances or requests for sexual favors. Both verbal and physical conduct, as well as other forms of harassment that create a hostile or offensive work environment, are covered. Some policies also cover accusations of mental anguish, emotional distress, humiliation and assault.

If your organization has a lot of interaction with the public, it is especially vulnerable to third-party claims like those described above. In some cases, EPLI carriers might not provide third-party coverage to firms with a high potential for claims. What they might offer instead is limited coverage, such as covering accusations of discrimination, but not harassment claims.

To protect your organization from third-party claims, you need to go beyond just purchasing coverage. You must implement policies and procedures that address discrimination and harassment issues, both from the standpoint of an employee’s actions and the actions of third parties. EPLI insurers are increasingly requiring employers to implement these practices before they will issue a policy.

Having policies in place will offer little help to stop third-party claims if employees aren’t adequately trained. New employee orientation programs should include a presentation outlining the organization’s harassment/discrimination policies. The training must also include how to report and handle a third-party claim. However, hearing the information once is not enough to insure compliance. Employees must be retrained periodically through departmental meetings. To maintain the effectiveness of departmental training sessions, be sure that supervisors are provided with copies of all policy updates and procedural changes.

One important caveat to keep in mind is that most EPLI policies don’t provide third-party coverage for accusations involving the violation of the Americans with Disabilities Act (ADA). Nevertheless, you should review your EPLI policy’s definition of a claim to determine the policy’s interpretation. Many policies define a claim as a “demand for monetary damages.” This definition can present a problem in an ADA claim, because many of these claims are asking for reasonable accommodations, not monetary awards. That’s why it is important to ensure that your policy’s definition of a claim includes claims for non-monetary damages. A policy with this expanded definition will cover defense costs and indemnity connected with an ADA claim, but will not provide the funds to bring your organization into compliance with the provisions of the law.

Business Interruption insurance is like Disability insurance for a business. Disability insurance covers some of a person’s lost income when they’e sick and unable to work. Business Interruption insurance covers a business’s lost income when a fire, explosion, or some other peril causes it to shut down temporarily. A shutdown after a disaster might have more severe consequences for a business than the damage to the property itself. Therefore, it is vital that business owners know whether they need to update their coverage.

There are two reasons why reviewing Business Interruption coverage regularly is important:

1. Economic conditions can change. When the economy is down, it is likely that a business’s sales will either drop or flatten. Continuing expenses, such as utilities, mortgage payments, and payments on other loans, may not necessarily decrease; in fact, some may increase, particularly if there is a spike in energy prices. Conversely, a rapidly growing economy or one with high inflation may quickly drive anticipated sales much higher than what the owners expected when they bought the insurance.
2. Regardless of the overall economy, businesses change. They introduce new products or services, expand into new markets, acquire new properties or other businesses, and invest in technologies that increase their productivity. All of these changes affect expected income and may change a business’s coverage needs.

When reviewing Business Interruption coverage, there are several factors to consider:

• Is the market for the business’s services expanding or shrinking? Cell phones, at one time seen as a luxury, over time came to be seen as a virtual necessity; millions of buyers entered the market. This increased sales for retailers and service providers.
• Has the business launched new products or services? In the year 2000, Apple, Inc. was solely a computer manufacturer. The next year, it introduced the iPod; later in the decade, it introduced the iPhone. These two products now account for a large share of the company’s sales.
• If the business has coverage for income from dependent properties, how have those properties changed? For example, the business might depend on one major supplier for parts. If that supplier used to have two warehouses but has closed one of them, a fire that shuts down the remaining warehouse will have a significant impact on the business’s income.
• Are competitors entering or leaving the market? A business that has increased competition will be under pressure to resume operations as quickly as possible to discourage customers from permanently going elsewhere. The business will want to pay whatever is necessary to minimize the shut down.
• Has the business’s peak season changed? Suppose a company that provides payroll and benefits administration services decides to start offering tax preparation services to its clients. Much of the tax work and its associated revenue occur during the first quarter of the year. A loss that shuts down the business in March will have a much larger impact than it would have before the firm got into the tax business.
• Have building codes changed in the business’s location? State and local governments are increasingly adopting “green” building codes that require environmentally-friendly construction materials and practices. Meeting these standards might lengthen the rebuilding period and lead to a longer suspension of business.
• What is happening to the business’s costs? If labor or material costs are rising and the business must raise prices to cover the increases, sales volume could decrease and affect the amount of Business Interruption coverage needed.

Taking the time to review coverage and the firm’s financial statements with our professional insurance agents will pay dividends after a loss. Proper Business Interruption coverage could make the difference between a business re-opening, or closing forever after disaster strikes.

A university hires an architect and general contractor for a multi-million dollar project involving the erection of a new state-of-the-art building containing multimedia-capable lecture halls. After three years of planning and construction, the university unveils the new facility to great fanfare. Within a few months, however, problems start to arise. Rain and melting snow fail to drain properly. Water seeps in through new cracks in the masonry walls. Mold forms on walls and ceilings, spoiling the appearance and causing allergic reactions among students and staff. Investigators for the university conclude that the building has significant design and construction flaws. As a result, the university files a number of lawsuits against the architect and the contractors who performed the work, alleging that their incompetence caused the problems.

The architectural firm notifies its Professional Liability insurance company of the allegations. Within a few weeks, the firm receives a letter from the insurance company stating that the company is reserving its rights to deny parts or all of the claim, pending its own investigation. The architect, already faced with a hit to its reputation and a potential loss of business because of the suit, reacts badly to the letter. The chief partner calls the firm’s insurance broker and demands to know why he has received this threatening letter after he has paid thousands of dollars in premiums for the insurance policy. The broker explains that the letter, known as a “reservation of rights letter,”� is a normal part of the insurance claims process. Not entirely reassured, the partner wants to know what the letter is all about.

A reservation of rights letter is a notice which states that, while the insurance company is handling the claim, the insurance policy might not cover the claim entirely. In the early stages of the claim process, the company has limited information about what happened. It could take time for the company to investigate and gather all the facts. However, many states have laws requiring insurance companies to notify clients and claimants promptly that coverage might not apply. By giving the insured an early notice, the reservation of rights letter preserves the company’s legal ability to deny some or all of the claim at a later date.

Insurance companies may deny claims for several reasons, such as:

The policy excludes coverage for the activity or event in question. For example, if the company’s investigation reveals that one of the firm’s architects intentionally designed a poor drainage system, the policy’s intentional acts exclusion will apply and preclude coverage. Likewise, the policy does not cover losses arising from faulty workmanship. If the company finds that faulty workmanship was responsible for the building’s problems, it will deny payment.

Even if an exclusion does not apply, the company will deny the claim if the policy does not apply to the particular loss. There might be some question as to when the loss occurred, particularly with problems that appear over time. The company will deny the claim if it determines that the loss occurred before the policy took effect.

Although the you might be alarmed to receive a reservation of rights letter, the letter does not necessarily mean that the company and the insurer must be adversaries. It merely means that the insurer has concerns about some of the allegations. With complex insurance coverages such as Professional Liability, it is not unusual for the insurer to issue such a letter. Work closely with our brokers, and the insurers’ claim departments, to ensure that all relevant information is available, ensuring a prompt and fair claims settlement.

The federal Centers for Disease Control and Prevention has estimated that between 1.8 and 5.7 million people in the U.S. contracted the H1N1 virus between April and July 2009. Although many of them might have picked up the virus from contact with family and friends, it is very likely that many became infected at their workplaces. Infected workers might not have realized they had the virus, or they went to work despite feeling sick. Exposure to communicable illnesses is a common occurrence at the workplace. If an employee becomes ill, misses work, and requires medical treatment, does the employer have to provide her with Workers Compensation benefits?

Workers Compensation laws require employers to pay benefits to workers who suffer injuries or illnesses that arise out of their employment. It might be relatively easy to determine that a particular injury arose from someone’s employment. For example, a carpenter who slips and falls off a ladder while installing walls in a new home is clearly on the job; Workers Compensation should cover the costs resulting from the injury. Illnesses, especially viral illnesses like influenza, can be more difficult for investigators to trace. A worker who gets sick might have contracted the virus at work, at the gym, on the subway, or any number of places.

According to the International Risk Management Institute, insurance investigators and physicians must answer several questions about an individual’s illness to determine whether it is work-related.

• Is the relationship of the illness to the exposure at work logical and plausible?
• Was the dose of the viral agent to which the person was exposed large enough to cause the illness?
• Are the person’s signs, symptoms, and test results characteristic of what a person with the illness would have?
• Where exactly did the person come into contact with the viral agent?
• Could the person possibly have been exposed to the viral agent outside of the workplace?
• Does all the evidence establish that the person’s exposure to a viral agent at work caused his illness?

People can be exposed to H1N1 and other flu strains in dozens of places, only some of which are work-related. Employers must evaluate the facts of a particular case when deciding whether or not to contest a Workers Compensation claim for work-related illness. If the employee’s duties kept him solely within the office and no other employees showed any flu-like symptoms, the employer might contest the claim successfully. However, if other employees showed signs of having the flu or the worker regularly has physical contact with vendors or customers who might have exposed him, the worker’s claim might be successful.

To reduce the chances of a successful occupational illness claim, employers should:

• Encourage employees to get vaccinations each year as the flu season approaches.
• Foster a work environment where employees who feel ill can stay home from work without fear of negative consequences.
• Where practical, allow telecommuting for employees with flu-like symptoms but who still want to work.
• Provide hand sanitizers for employees and visitors to use.
• Provide employees with educational material about H1N1 and other flu strains.
• If an employee becomes ill while at work, segregate him from the other employees until he can go home. Require him to take precautions, such as covering his nose and mouth, if he must visit common areas of the workplace.

Businesses should also consider creating a plan for dealing with a pandemic, should it occur. Visit www.flu.gov to find information on how to write the plan and for other resources on managing flu risks. People spend much of their waking hours in the workplace. Businesses therefore play an important role in keeping them healthy and safe. With planning and common sense precautions, businesses can stay productive and healthy during flu season. And be sure to contact our office with any specific Workers Compensation questions.

According to a 2008 study conducted by the Association of Certified Fraud, U.S. businesses lose about 7% of their annual revenues to fraud. This equates to a staggering $994 billion loss each year nationwide to employee fraud. Even worse, occupational fraud schemes are extremely costly to a company’s bottom line, with the median loss in the 2008 study coming in at $175,000!

The three most common categories of employee scams are: Fraudulent statements, asset misappropriation, and bribery or corruption. Two out of five businesses suffer more than five instances of fraud, and one in four loses at least $1 million as a result of fraud. For these reasons, Crime insurance is a wise purchase, extending coverage to you and your business for fraud-related financial losses.

In addition to covering employee fraud, most Crime insurance policies also cover third-party scams including forgery, counterfeit currency, and theft of company property. Many policies also cover money losses due to computer fraud by hackers who seek company funds, customer credit card numbers, or other financial data.

In fact, as more and more business is done over the Internet, computer coverage and protection against unauthorized funds transfers or computer access are on the rise. Technology has opened the door to make some fraudulent schemes much easier to accomplish. For example, with a simple scanner, it is easy to forge a check, and many fraudulent Web sites attempt to collect personal data from unsuspecting victims.

Not all fraud-related crimes involve money. Some involve company goods that have no apparent value. Keep in mind, there are markets for many unusual items. One insurance company tells of a meat packing plant where an employee was stealing animal fat, and selling it for personal gain.

Although many employees carry out such crimes because they are disgruntled, the most common motivations for employee fraud are greed, vindication against the employer, and financial need. Regardless of motive, you need to be aware of the possibilities, and adequately covered.

When employees get caught for such crimes, they do jail time, but companies never fully recover the total amount lost. That’s where Crime insurance comes in. With proper coverage, you can recoup your financial losses.

In addition to Crime insurance, it is also recommended to maintain a strong system of checks and balances to ensure that unethical employee behavior doesn’t pay off. Such controls can affect your company’s insurability and premiums as insurers examine the extent of internal controls, as well as a company’s history of fraud losses when determining whether the company is a good risk. With a combination of Crime insurance as well as internal control procedures, you will protect your company as well as show dishonest employees that crime doesn’t pay.

Like most new home-based business owners, you might believe that your Homeowners or Renters insurance coverage offers sufficient protection. That is unfortunate, because in most instances these policies offer little to no coverage for business-related losses.

Homeowners policies are not designed to cover business losses. Most offer a small amount of business property coverage, meant to cover incidental items, such as a computer used for office work.

Depending on your business, you might be able to purchase a Homeowners endorsement to cover your business property. Your insurer is naturally going to want to know more about your business. Questions such as what type of business, how long you have been in business, and how many employees are common.

If your business is small with a low risk profile, and with limited client visits to your home, your Homeowners insurer might offer limited liability protection. This protection would cover slips and falls when a client visits your office, which otherwise would not be covered.

If this option is not available, you might want to consider a Small Business policy. Your Homeowners insurer might offer a home-based business package for a reasonable premium, or another insurer can offer a package policy to cover the liability and property of your business.
Take a look at the following list. If one or more of the items below apply, you might want to consider a Business policy for your business:

• Business Property, Stock or Equipment greater than $10,000 in value. A Business policy will allow you to insure your office contents, equipment, and stock. A Homeowners policy will likely have little, if any, coverage for business-related items.
• Clients visit your office/use your product/depend on your service. Liability insurance can help cover your exposure to lawsuits resulting from slip and falls, product liability claims, personal injury claims, etc. Perhaps even more importantly, it will provide defense costs for such actions. Homeowners policies do not have coverage for business liability. In a few instances, you might be able to purchase an endorsement to allow coverage for slip and falls due to customer visits, depending on your type of business.
• Damage to your office/workspace would require you to relocate/find a temporary substitute. Extra Expense coverage in a Business policy will provide funds for a temporary office/workspace or cost of a mobile trailer near your damaged office site.
• An Error or Omission could result in a lawsuit that would need to be defended/could seriously damage your business. Errors and Omissions coverage will protect you from judgments and defense costs resulting from past mistakes.
• Damage to your workplace could cause you to lose business, perhaps even lose some customers permanently. Business Interruption coverage will help pay for expenses until your property is repaired or sales return to normal (depending on the policy form).
• Your employees use their vehicles to make deliveries or run errands for your business. Non-Owned Automobile Liability will protect your business in the event that your employee has a serious accident during the course of running an errand for your business.

Contact our office today for more information about your home-based business insurance needs!