Property & Business

 Interruption Insurance

Home Health Care Agency owners face some fairly typical ‘Property’ exposures. Following is a simple list of some of the more common items that Home Health Care Agencies buy insurance for:

Buildings: If you own the building you are located in, then it is imperative that you buy insurance for damage to the building.

Business Personal Property: Business Personal Property  insurance provides coverage for loss or damage to your business personal property  (e.g., computers, printers, servers, office furniture).  Coverage limits are individual and you should buy enough insurance to replace your property on a NEW FOR OLD basis.

Tenant improvementsWith business personal property insurance, you can also cover improvements you’ve made to your rented office space that you can’t legally remove.

Coverage in and away from the office: Your business personal property is insured when it’s physically in your office.  Some policies also have coverage extensions for business personal property you take away from your office. This option should be tailored to your needs.

Replacement Cost: Most small businesses policies now include business personal property valued at its replacement cost. There is no deduction for depreciation so you can replace damaged items for equipment of like kind and quality.

Personal effects: Some policies also have coverage extensions for Personal Effects. This option should be tailored to your needs.

Loss of business income and extra expense: Most business owner’s  policies now include insurance that will pay the actual income your business loses and extra expenses incurred you incur for up to 12 months if you cannot operate your business as a result of damage to your business personal property . The damage MUST arise from a covered peril under the policy you purchase.

Equipment Breakdown (Formerly Known as Boiler & Machinery)

Typically property insurance polices EXCLUDE damage arising out of things like ‘Electrical Arcing,  Power Surge, and other type of “Electrical Injury”.  This coverage address that exposure.

Some Key things That Business Personal Property insurance does NOT cover:

Earthquake &  Flood: Business property insurance doesn’t cover you for losses caused by earthquake, or  floods.  You can buy specific coverage for these exposures.

Dishonesty:   Business property insurance won’t cover you for dishonest or criminal acts committed by you or your employees. Theft by your employees is not covered.  You can usually buy coverage for employee theft by adding a specific sub limit.

UtilitiesYour commercial property insurance will not cover losses due to the failure of a power, communication or another utility service supplier. Again, some companies offer specific coverage extensions with a policy sub limit.

IMPORTANT:  This a a simple list of some of the more common items that Home Health Care Agencies buy insurance for. It is not all inclusive.

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