Business to Business

It's back to school time, and businesses far and wide respond to the demands by increasing inventory and promoting services like hair coifs for the kids and extra cafe lattes for mall-weary parents. If your business is one that has a peak season, consider amending your business property insurance to cover the temporary inventory bulge. The business personal property or "contents" portion of your business insurance has a dollar limit that probably reflects your average inventory and often doesn't account for or adjust to that isolated time frame when you bulk up your inventory. That limit is what the insurance adjuster will base your payment on if a loss occurs. If a loss happens during your peak season and the value of your inventory exceeds the dollar limit of your policy, a portion of your loss would not be covered.

Organized retail crime is a growing industry of shoplifters and burglars targeting retail goods that are easy to resell quickly. The FBI reports exponential growth of these organizations in recent years. Being struck by these thieves is serious-and expensive-business. Products that are favorites include over-the-counter medications, apparel and baby formula-all items that are relatively costly and easy to resell.

Traditional auto, property and liability insurance policies contain gaps a catering business owner should understand. Auto Insurance — Many personal auto policies contain exclusions for autos used in the business of catering. Depending on the type of catering and equipment, business auto policies may contain similar exclusions. Property Insurance — Most property insurance policies limit or exclude the use of business personal property away from the insured's premises. This poses a significant risk for caterers since a majority of catering is done off-premises. General Liability Insurance (CGL) — The good news is that most traditional CGL policies provide coverage anywhere within the coverage territory. Alcohol — Alcohol service may pose a threat to coverage. Caterers who sell alcohol at events likely have no coverage under a CGL for claims of legal liability (e.g., a caterer serves someone too many drinks, then that person becomes intoxicated and causes an accident). Caterers who are not in the business of selling alcohol or are pouring drinks provided by someone else probably still have coverage under a CGL. For more information on getting the best coverage for your catering business, call our office today.

If you are the lessor of a commercial property containing multiple tenants, take note of the vacancy provision in your commercial property policy. Most property policies limit or exclude coverage for buildings considered "vacant” by the policy and might require an endorsement to amend that. Vacant, as defined by the policy, means 31% or less of the building is occupied. A building under construction is not usually considered vacant.

Companies that lease staff from employment leasing firms are often concerned with how their insurance coverage will apply to both liability claims caused by the leased worker and injuries to the leased worker. The commercial general liability (CGL) policy extends liability coverage to the insured organization for claims resulting from the actions of an "employee."