Getting Started - How to Start a Home-based Computer Repair Business - page 83

your current agent to leverage good commercial insurance rates. As with your banking re-
lationship, you are the insurance company's customer and should be treated as such.
You're going to want to be insured by a business owner's policy (BOP). When you're at
your home office and holding a customer's device for service, the last thing you'll want to
worry about is if something happened to that device while in your care. Theft, fire, van-
dalism—these are all real-world worries that all small business owners deal with. You can
combat those worries to a certain degree with comprehensive insurance plans in place.
The most common types of commercial insurance are property, liability, and workers' com-
pensation. In general, property insurance covers damages to your business property. Liab-
ility insurance covers damages to third parties. Workers' compensation insurance covers
on-the-job injuries. Depending on your business, you may want additional specialized cov-
erages. Listed below are some of the different types of business insurance.
Property Insurance
Property insurance pays for losses and damages to real or personal property. For example, a
property insurance policy would cover fire damage to your office space. You can purchase
additional coverages for business property, including:
n Glass Insurance. Glass insurance covers broken windows, including plateglass windows.
n Inland Marine Insurance. Inland marine insurance covers property in transit and other
people's property on your premises. For example, this insurance would cover shipping
damage to customers' computers in transit to and from your office.
n Tenant's Insurance. Commercial leases often require tenants to carry a certain amount
of insurance. A renter's commercial policy covers damages to improvements you make to
your rental space and damages to the building caused by the negligence of your employees.
n Business Interruption Insurance. Business interruption insurance covers lost income and
expenses resulting from property damage or loss. For example, if a fire forces you to close
your doors for two months, this insurance would reimburse you for salaries, taxes, rents,
and net profits that would have been earned during the two-month period.
n Crime Insurance. Crime insurance covers theft, burglary, and robbery of money, securit-
ies, stock, and fixtures by employees and outsiders.
Liability Insurance
Liability insurance covers injuries that you cause to third parties. If someone sues you for
personal injuries or property damage, the cost of defending and resolving the suit would
be covered by your liability insurance policy. A general liability policy will cover you for