A Business Office Policy is an insurance policy that is structured to combine several coverages into a single policy. Office policies include commercial general liability, building (if applicable) and business personal property, along with non-owned/hired auto liability, and a multitude of other coverages.
Why do I need a Business Office Policy?
From a liability perspective, it protects against claims that a professional liability policy does not and your clients/ office landlord will require it. From a property point of view, the policy protects your office property, including instruments of service, from fire, vandalism, theft and several other property perils.
Commercial General Liability: Provides liability coverage if your business is held liable for bodily injury and property damage that does not arise from professional service related activities. This liability can arise from:
Completed Operations Liability
Personal Injury or Advertising Injury: Primary exposure being slander, libel or disparaging a person or organization’s goods, products or services.
Damage to Premises Rented to You: Covers property damage liability to space that is rented or leased by your business.
Additional Insured Coverage: Protects persons or organizations that you agreed to add in a written contract or agreement from claims in the event your actions result in a claim also being made against them.
Waiver of Subrogation: Removes the right of your insurance company, after paying a claim, to recoup payment from any person or organization that you agreed to waive this right in a written contract or agreement.
Primary and Non-Contributory Wording: Amends your policy to respond first in the event a loss or claim can be shared between you and any person or organization that you agreed to do so in a written contract or agreement: with their policy not responding until your policy limits are exhausted or could not respond for some other reason.
Aggregate Limit Applies on a “Per Project” Basis: Revises the policy limit to apply separately to each of your projects, or each of your office locations listed on your policy declarations page.
Non-Owned and Hired Automobile Liability Coverage: Expands commercial general liability protection to include use of personal vehicles by employees, or rented or leased vehicles.
Business Personal Property: Replacement of business property (and property of others, including leased property, in your care, custody or control) used to operate the business that are damaged or lost due to a covered event. Examples include cubicles, desks, tables, lamps, chairs, couches, bookcases, refrigerators, and office supplies.
Tenant Improvements & Betterments: Damage or loss of office fixtures that you permanently install and were not provided by the landlord; which cannot be removed when you leave. Examples include interior walls, cubicles, shelving/cabinetry, kitchens, internal wiring or plumbing.
Computers & Media: Covers the replacement cost value of computers, peripheral devices (i.e., modems, printers, scanners), related component hardware/software that are damaged or lost due to a covered event.
Electronic Data Processing Data & Media: Covers the cost to research/replace/restore lost electronic data stored on computers and media and the replacement cost of blank media. Examples include data stored as, created or used on, or transmitted to or from computer software, including systems and applications software, CD-ROMs, tapes, drives, cells, data processing devices or any other media which are used with electronically controlled equipment.
Valuable Papers & Records: Includes the cost to research, replace or restore lost information for which duplicates do not exist. Examples include inscribed, printed or written documents, records or manuscripts; including specifications, drawings, films, card index systems, maps, abstracts, deeds, and books.
Equipment Breakdown: Protects your firm’s office computers and data systems, printers, copy/fax machines, phone and security systems; which can be damaged by power surges, short circuits and other electrical fluctuations.
Loss of Business Earnings and Extra Expenses: Loss of income and the extra expense to continue or resume operations due to a covered event.
Accounts Receivable: Protects against loss of outstanding accounts that are not collectible due to lost or damaged records plus the expense of reconstruction and extra collection fees from a covered event.
Earthquake Sprinkler Leakage Coverage (Optional): An endorsement that provides coverage for damage caused by leakage from an automatic sprinkler system as a direct result of an earthquake.
An Umbrella policy designed to provide protection against catastrophic losses by providing additional liability over several primary liability (aka “underlying”) policies, such as:
Commercial General Liability
Commercial Auto Liability
Employers Liability (i.e., part of a Workers’ Compensation policy)
The Umbrella policy serves two (2) important purposes by providing:
Excess limits when the limits of an underlying liability policy is exhausted by payment of claims
Protection against some claims not covered by the underlying policies, excess of the Umbrella policy deductible if this type of situation occurs
ERISA Compliance Coverage: Protects against theft of funds from retirement plans, which is required by the Employee Retirement Income Security Act (ERISA).
Employee Benefit Coverage: Covers the liability of an employer for an error or omission in the administration of an employee benefit program. Examples include neglecting to add an employee to a benefits plan or adjusting an employee’s coverage as requested.
Employee Dishonesty: If an employee’s dishonest acts – such as theft – cause your business loss or damage, your policy will offer coverage, even if the loss is to money or securities.