Business Insurance: Special Risks Checklist

A prudent business owner will purchase a multi-peril policy. Generally, a multi-peril policy will cover risks that are not specifically excluded in the policy provisions. There are risks, however, that are outside the norm. Certain of these “outside the norm” risks may be applicable to a particular small business. The entrepreneur should be alert to these risks. Coverage might be included as an endorsement to the primary policy or might involve purchase of a separate policy altogether.

Examples of such risks include:

• Accounts receivable insurance for exposure to credit risk
• Additional coverage for cash on securities on hand
• Consequential losses as a result of a covered event
• Custody and control over customer belongings
• Boiler and machinery
• Business interruption
• Event interruption
• Fidelity bonds
• Glass breakage
• Internet or other data processing risks
• Lost profit on manufactured goods destroyed by a covered event
• Power interruption
• Risk of goods in transit
• Surety bonds
• Title insurance
• Water damage

Special policies can also be written to cover:

• Errors and omissions
• Directors and officers liability
• Employment practices liability
• Liquor liability
• Hazardous materials handling liability
• Kidnapping and extortion coverage
• Almost any other special risks that might arise

Talk to your insurance provider to see what is available to you.