| The insurance industry is truly a complex one. Individuals and business owners know they need it, but a good part of the time aren’t sure what they are getting. It is up to the insurance agent to advise the client and the agent only finds out about their needs by asking questions and listening.
The normal coverages which most people know about are liability, which provides defense and/or pays damages in the event someone is injured or some property is damaged, while the business owner or employees are in the course of operating their business and property coverage, for the protection of their business’ contents from fire, theft or other destruction.
Some little understood coverages for business’ are:
Non-Owned Auto, which covers non-owned vehicles being driven by others on behalf of the business. An example might be for an employee to use his own car to run an errand or do a delivery for the business. The business owners can be held responsible for injury or damage arising out of such use.
Hired Auto, the business owner can be held liable for claims arising out of their use of a rented or hired vehicle. The owners of such vehicles may not carry adequate coverage and their insurance may not protect the business owner.
Business Income, monies would be provided to maintain ongoing business expenses, such as monthly rent, payroll and utility payments, etc. in the event of a covered loss, in which your business could not be open for a temporary period of time.
Extra Expense, Again in the event of a covered loss, monies would be provided to pay the extra expenses involved with moving to a new location for continued operation of the business, during a recovery period.
Ordinance & Law, If the building you own is damaged by a covered loss and in order to rebuild, you must comply with current building codes, it can cost more that what it would to rebuild “as is.” The insurance provider would cover the extra expenses needed to rebuild to the current building codes. This coverage is especially important when insuring older buildings.
Life Insurance, is one of the most important, but the least purchased. It is written on a separate policy from the other coverages a business might have. The business should have Life Insurance on owners and/or partners, it is commonly called “key man” insurance. This coverage would provide funds to continue the business operation without interruption in the event of the untimely death of an owner. As an example, it would provide funds to purchase the deceased’s portion of the business from family members or his/her estate or used to hire a person to perform the duties of the owner(s), until the business can be sold or closed.
The key as a business owner and consumer of insurance products, is to be aware and ask questions.
(Editor’s Note: Sharon McAffee is a business insurance specialist with Bratrud Middleton Insurance in Bremerton. She may be reached at (360) 373-2595, 888-478-5551 or SLM@bratrud.com.). | 
