Filling the Gap between Business and Homeowner’s Insurance Starting a small business that utilizes special equipment can be a daunting task. Insurance of any kind can be complex, and understanding the pitfalls of relying on just your homeowner’s insurance for protecting your business assets could be a mistake. In many industries, such as the hi-tech industry for computer hardware and software development, start-up businesses can have a gap between what their typical liability insurance may be and their typical homeowner’s may cover for equipment damage.
With homeowner’s insurance, it is very common that computer systems that are industrial grade, such as used in server racks, represent an example of the different types of heavy equipment that is not covered by a policy. While at times some homeowner’s insurance policies may permit a special computer provision, this typically maxes out at between $10,000 and $30,000 of coverage. This limit is especially true for equipment used for a home business or small business.
MARINE INSURANCE coverage works differently. First, there are a variety of different manners in which one can leverage Inland Marine Insurance coverage. The most typical INLAND MARINE policy for a small business from home is for equipment coverage, since a small business liability policy does not provide equipment coverage, and since a homeowner’s policy typically maxes out at too low of a coverage limit.
INLAND MARINE equipment coverage works by having the business owner provide a list of assets to be covered, with purchase price and anticipated replacement cost, as well as depreciation schedules. The cost of this coverage is very reasonable, as compared to having to purchase a typical large commercial level business insurance policy.
If there is a specific need for equipment coverage for a small business, especially those businesses with computer or heavy industrial equipment, then INLAND MARINE coverage is an economical way to cover the equipment. There is no employee limit or minimum requirement with Inland Marine, no specific amount of revenue production required, and no credit checks.
INLAND MARINE coverage will reimburse your business up to either the replacement cost or depreciated cash value, depending on your selections at policy inception time, without the invasive procedures required from a homeowner’s policy such as having to deliver an inventory after the loss. Since a full asset list is already provided ahead of time, during the policy creation, INLAND MARINE’s capability to pay out for equipment damage is much faster and more accurate. In short, INLAND MARINE, while providing a plethora of other insurance options, specifically can work as one of the only ways to fill the gap in equipment coverage between homeowner’s and small business liability insurance policies.