Insurance Checklist
You can purchase insurance to cover almost any risk. Business owners most commonly use the following types of coverage:
Property Insurance (basic policy):
- Fire, extended coverage, Vandalism, malicious mischief, windstorm and hail.
Additional Property Insurance (optional, or may be required by leasing agent)
- Flood
- Plate glass -- covering window breakage
- Boiler -- covering damage caused by boiler explosion
Liability Insurance
- Public liability -- covering injury to public (customers, pedestrians)
- Malpractice -- covers claims from guests who suffer damages due to your services.
- Errors and omissions -- covers against claims from guests who suffer damages because of errors you've done, or things you failed to do.
Employee Insurance
- Worker's compensation
- Fidelity bonding -- covering theft by employees
- Life insurance
- Health insurance
- Disability insurance
- 401-K plan
Business Insurance
- Fraud insurance -- covering bad checks, counterfeit money, larceny
- Business interruption -- covers loss of income and extra expense in event of fire or other catastrophic loss.
Vendor Insurance
- All vendors to name the property owner, the franchisee and the franchisor as additional insured in order to perform work on a property. (Proof of insurance required)