For a small-business owner, picking up certain insurance policies probably feels like a no-brainer. You have property your business depends on, so you purchase Commercial Property Insurance. Easy peasy, lemon squeezy.
For some businesses, it may be that simple. But if your operations take you away from your primary location, you might need one of these additional policies to protect your business.
1. Commercial Auto Insurance
Imagine you’re a consultant, and you get a new client in the next town over. Being the hands-on person you are, you hop in your car to meet them at their location. Unfortunately, you get in a tiny fender bender on the way. What's worse: your personal auto insurance may not cover it.
We understand. You thought you were being responsible, but the fact is most personal auto policies don't cover work-related driving, including errands and business trips. For that, you may need Commercial Auto Insurance.
If you have a vehicle in your business's name, Commercial Auto is a must.
2. Hired and Non-Owned Auto Insurance (HNOA)
Now imagine you’re lucky enough to have an underling to meet that client instead. Any accident in your employee's car is their problem, right?
Not so fast. Because the driver is your employee acting under your direction, you could still be held liable for accidents that happen during business errands. However, Hired and Non-Owned Auto Insurance may cover accidents your employee causes when driving for work.
Hired and Non-Owned Auto Insurance may come in handy if you…
- Rent cars on business trips.
- Ask employees to run errands in their personal vehicles.
- Have a sales team that drives to clients.
- Lease cars for VIP visitors.
This policy can be purchased as a standalone policy, but many small-business owners choose to add it as a rider to their Commercial Auto Insurance.
3. Inland Marine Insurance
Property Insurance is typically tied to the address on the policy. That’s fine for a lot of businesses, but it can leave considerable coverage gaps for others, including…
- Wedding photographers.
- Construction companies.
Inland Marine Insurance can supplement property coverage for these professionals because it's a “floater policy.” That means it moves with the property it covers and can pay if that property is damaged in transit or at a location away from the primary business address.
Additionally, Inland Marine policies can cover…
- Expensive artwork.
- Valuable documents.
- Mobile equipment.
Get more details in the blog post “What is Inland Marine Insurance?”
4. Special Property Insurance Coverage Endorsement
The Property Insurance gap is a particular problem for cleaning businesses because the majority of their operations take place at their clients’ offices. As a result, many opt for a Special Property Insurance Coverage Endorsement (SPICE). SPICE typically offers…
- Protection for property in transit.
- Business Interruption Insurance, which can cover lost income when a covered event halts business operations at select client locations.
- Coverage for employee theft, forgery and alterations, and money and securities.
Note: SPICE is a rider that needs to be added to a Commercial Property Insurance policy.
5. Special Event Insurance
As your business grows, you may find yourself hosting…
- Holiday parties.
- Trade shows.
- Golf outings.
Events like these are all fun and games until someone gets hurt. But because these events aren't your normal business operations, your General Liability Insurance may not cover the accidents and injuries that happen during them.
Even if you only plan to host a party for a small group of investors, Special Event Insurance may be in order. It can usually cover third-party injuries and property damage, such as an attendee’s slip-and-fall injury.
Wondering if this coverage is for you? Get your questions answered in "How (and When) to Purchase Special Event Insurance."