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Additional Coverage Options for Business Owner’s Policy

The primary reason for the existence of the Business Owner’s Policy is to provide succour to small businesses in need or in times of distress. However, merely the basic Business Owner’s Policy may not be enough for certain businesses. Identifying the fact that the requirements of different businesses vary, there are provisions for many kinds of additional coverage which any small business owner can take as extra options. Here is a brief discussion on four additional coverage options which can be considered by any small business owner:

Coverage 1: Accounts Receivable

Though most businesses have a contingency policy for accounts which are receivable from clients, there may be some businesses whose nature and client’s profiles may connect the accounts receivable to property which may be susceptible to loss. This particular option of the Business Owner’s Policy allows the business owner to be insured against such accounts receivable. The cap is 10,000 USD for every occurrence of records which are within the premises and is 5000USD for such of those records situated outside.

Coverage 2: Computer Frauds and Funds Transfer Frauds

All businesses face the risk of unauthorized fund transferring to the bank account of the business. It covers both electronic transferring and transfer of funds through written instructions. An Endorsement for Computer Fraud and Funds Transfer in the policy will
suffice and the insurer is liable for the loss of finances and other securities which occur due to the unauthorized transfer of funds.

Coverage 3: Burglary and Robbery 

Some small businesses generally house goods, equipment and sophisticated machineries whose costs are high. Such items are always exposed to the risk of getting burgled or robbed. This optional additional coverage covers the property from burglary or robbery when it is housed in the banks, the owner’s abode, in the office or during travel between any of the above mentioned places.

Coverage 4: Money and Securities 

As the name suggests, this optional coverage facilitates the covering of the securities and money which is at the business office, when the money or security is entrusted to an employee, when they are in the owner’s abode, in a bank or in travel between any of the
places mentioned previously.

This is a good additional coverage to have to the Business Owner’s Plan because a lot of businesses generally involve money or securities being housed or handled by employees and hence are prone to risk.