Does Business Insurance Protect Against Hazards Outside the Office?

When buying small business insurance, you’re probably thinking about protecting what’s inside your business. Have you considered the many ways your company may need insurance coverage outside?

For example, a customer could trip and fall in your parking area. Expensive outdoor furniture could be stolen from your restaurant. An exterior sign could be damaged during a storm. Do you know if your business owners policy (BOP) covers common outdoor unexpected incidents?

Business Owners Policy Coverage

A BOP typically helps protect your company’s physical building and the furniture and other items within it, according to the Insurance Information Institute (III). In many instances, you may also be covered if business property (like furniture or wall art) is stolen or damaged within 100 feet of your building (in a vehicle or shared lobby, for instance), according to the American Institute of CPAs (AICPA).

According to the AICPA, some BOPs include a small amount of outdoor coverage, while others do not. Make sure you check your policy, and to talk with us at Watson Insurance Agency about whether you may need additional coverage.

Weather hazards, like a severe storm causing a large tree to damage an office roof, would most likely be under your BOP coverage. This is because the damage is to your company’s physical structure which is something covered by most standard BOPs (III).

If a customer happened to trip and get hurt in your parking area, their medical bills and other financial results related to their injury could be covered by your BOP (or your landlord’s insurance if you are renting), according to the legal publishing firm

Additional Coverages

There are some outdoor situations, however, in which you might want to consider add-on coverage for your business. A few examples:

Your Outdoor sign that isn’t attached to your building: Extra coverages to possibly consider – Outdoor signage, mechanical breakdown

Your outdoor fences, antennae or satellite dishes: would cost more to repair or replace than your standard BOP coverage. Extra coverages to possibly consider: outdoor property; mechanical breakdown

You often carry company equipment offsite: such as expensive lighting to music festivals or catering supplies to weddings outdoors. Extra coverage to possibly consider: property-in-transit and offsite

Your landscaping is extensive: trees, shrubbery, plants and rockwork that would be expensive to replace if it were damaged. Extra coverage to consider: outdoor property

Your company regularly uses outdoor tables, chairs, heaters, lights and other fixtures: Extra coverage to possibly consider: outdoor property

To learn more about the ins and outs of business insurance —and how your policy addresses outdoor perils — contact us at Watson Insurance Agency.


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