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Optional Property

Fill in the gaps and address exposures with these optional coverages that complement your required policies.

Contents and Inventory

As a business owner, the value of items needed to help run your operation can add up quickly. But what if these items are damaged or stolen? That's where contents and inventory coverage can help. This policy covers risk of direct physical loss to property owned or leased by the business owner.

Mother Nature can throw bad weather or natural disasters your way, or a vandal and thief can cause havoc.  

What types of property are covered under this policy?

This policy is an “open perils” policy meaning, generally, the direct physical damage to your property is protected from all causes of loss except for those that are specifically excluded.

Examples of covered items include any business personal property used in operation of the business.

Items specifically excluded from this policy are airborne or waterborne property, aircraft or watercraft, animals, automobiles and vehicles checked luggage, contraband, land, money, securities, outdoor property, property of others, and property you have sold.  

What types of perils are covered?

This policy covers direct physical loss or damage caused by risks, such as: Aircraft or vehicle collision, burglary/break-in damage, explosion, falling objects (trees), fire or lightning, flood, earthquake, sinkhole collapse, smoke, spoilage resulting from loss of power or mechanical failure, vandalism, riot or civil commotion, water damage, weight of ice and snow, windstorm, or hail.


Business Income/Interruption

Business Income covers actual loss of a business owner's net income and continuing operating expenses normally incurred, including but not limited to ongoing payroll, sustained as a result of a direct physical loss to the insured business location.

This coverage must be purchased in conjunction with contents and inventory coverage and cannot be purchased separately.

Who is covered?

For business income/interruption coverage to respond, a direct physical loss must occur either to the business' location OR to off-premises property which results in loss of utility service (e.g. water supply is cut off). Protection is provided up to the coverage limit purchased. Examples of covered scenarios include:

  • Water main breaks due to a direct physical loss (i.e. contractor damages water main while excavating jobsite nearby).
  • Electricity service provider sustains damage from storm at power plant making power generation impossible.
  • Overhead transmission lines that carry power to business location are damaged from a storm or other direct physical loss.
  • Lack of or inadequate water supply caused by fire or direct physical loss occurring at water treatment facility.
  • Contamination of water supply caused a direct physical loss, such as fire at water treatment plant, preventing supply of treated water to the business location.
  • Police prevent access to the business location due to damage to adjacent building caused by fire or other insured cause of loss.
What is not covered?

The following scenarios are typically not covered:

  • When there is a partial or complete closure of the insured business location without a direct physical loss caused by a covered peril to the business location or direct physical loss sustained to an off-premise property which results in loss of utility service.
  • When there is a partial or complete closure of the insured business location that did not sustain a direct physical loss from a covered peril for which civil authority did not specifically deny access to as a result of a direct physical loss by a covered peril at a neighboring property.
  • For policies with coverage effective dates prior to Nov. 1, 2017:  When there is a partial or complete closure of an insured business location because access to or from the business location is partially or totally denied due to covered cause of loss to real and personal property within 5 miles of the buisness location
  • Loss due to interference by strikers or other persons at an insured location.

Non-Owned Auto/Physical Damage

Non-owned auto physical damage coverage provides protection for damage sustained to autos not owned by the Operator while being utilized for his/her business. Autos covered under this policy includes those 

  1. owned, leased or borrowed by Team Members of the covered business,
  2. borrowed/rented for use by the Operator or Operator’s corporation for his/her covered business, or
  3. leased by the Operator or Operator’s corporation for his/her covered business, while being used to conduct business of the Operator’s business.

This coverage cannot be purchased stand-alone. It must be purchased with contents and inventory coverage or with contents and inventory and business income/interruption coverage.

What is covered?

This policy will pay up to the policy limit for loss to a covered non-owned auto being used for the Operator’s covered business  for any collision with another object/vehicle or a covered auto’s overturn. Additionally, coverage is included for loss caused by:

  • Fire, lightning or explosion.
  • Theft.
  • Windstorm, hail or earthquake.
  • Flood.
  • Mischief or vandalism.

Coverage also includes glass breakage, loss caused by hitting a bird or animal; and loss caused by falling objects while a non-owned vehicle is being driven for the Operator’s covered business.

What is not covered?

The following scenarios are typically not covered:

  • A Team Member’s vehicle that may become damaged while parked in the owner’s covered business parking lot (i.e. hail, theft, flood, etc.) while not being utilized to conduct business of the owner’s business.
  • Vehicles owned by the owner or the ownerr’s corporation for use in his/her business.
  • A Team Member’s vehicle that may become damaged when driving to or from the owner’s business to perform his/her regularly scheduled shift.
  • A Team Member’s vehicle that may become damaged while parked at the owner’s business during his/her regularly scheduled shift.
  • Loss of use, loss of value or rental car expenses while a “covered” vehicle is being repaired. 

Additionally, the following types of loss are excluded from this coverage including: nuclear hazard, war or military action, wear and tear, freezing, mechanical or electrical breakdown, blowouts, punctures or other road damage to tires (this exclusion does not apply to loss resulting from theft), audio, visual or data electronic equipment, any device designed or used to detect speed-measuring equipment, such as radar or laser detectors, and any loss to covered auto due to diminution in value.