Office Package Insurance Coverage Explained

Office Package Insurance Coverage Explained

Who Needs Office Package Insurance?

If you own or manage a business operating out of an office, then you need an office package insurance policy to ensure that you have the right coverage that your business needs in the unfortunate time of a loss.

What Does Office Package Insurance Cover?

Office package insurance policies are just that– a package. The following are the three main types of insurance coverage that are commonly included in office package insurance policies;

Commercial General Liability Coverage

Commercial general liability coverage is almost always written on an occurrence basis, but can also be written on a claim basis. Commercial general liability written on an occurrence basis covers your legal liability for both bodily injury to a third party and property damage to property of others caused by an occurrence. This occurrence would need to take place within the coverage territory that is stated within the policy and must occur within the policy period in order for the policy to respond. Other common overages included in commercial general liability include, but are not limited to, the following;

• Personal Injury (libel and slander, false arrest and malicious prosecution, wrongful entry)
• Medical Payments
• Tenant’s legal liability
• Employers’ liability coverage
• Non-owned automobile coverage

Office Contents Insurance Coverage

Included within office contents coverage are equipment, tools, and tenant’s improvements and this coverage on a standalone basis are called commercial property insurance. It is common to have this coverage provided on a broad form basis, also known as all risks basis, for direct physical loss or damage. Physical loss or damage due to floods and earthquakes are commonly excluded, but can usually be added for an additional premium. This additional premium can vary greatly depending on the geography of your office and the replacement cost value of the contents.

Business Interruption Coverage

Business interruption coverage provides coverage for a move or a loss of income when a business is forced to temporarily close due to an insured loss occurring. Business interruption coverage enables to you minimize potential damage to your business by;

• Coverage for lost income if your business has to vacate its premises as a result of disaster-related damage that is covered under the office contents/property portion of your policy
• Covering operating expenses such as utilities, that must be paid even though business temporarily ceased
• Covering expenses of operating in a temporary location while repairs to the permanent location are completed