The Business Owner Package Policy is similar in many respects to the Homeowner Policy with which most of us are familiar. This policy is not available to all business, but instead is designed for the more preferred low risk type businesses such as retail stores and service risks. The coverage similarities to the Homeowner Policy lie in that this policy incorporates building and/or contents coverage as well as comprehensive business liability coverages into one policy which generally results in a lower premium. The Business Owner Policy also includes valuable supplemental coverages such as Business Interruption/Extra Expense coverage, Money and Securities coverage, and Mechanical Breakdown Coverage.
For example, Business Interruption/Extra Expense coverage would provide coverage for Business Loss of Income and Extra Expense incurred as a result of a covered property loss. Usually, this coverage does not have a dollar limitation; but instead provides coverage for up to twelve consecutive months.
Money and Securities Coverage would provide limited coverage for loss of money and securities arising out of burglary or hold up or robbery.
Mechanical Breakdown coverage would provide limited coverage for mechanical breakdown of heating, cooling, refrigeration, computer, and office equipment owned by the insured client.