Corporate offices typically administer, oversee and manage the overall operations of a corporation or enterprise. They often take on decision-making and organizational planning roles as well as other responsibilities.
Corporate offices have unique risk exposures and need a comprehensive business insurance package to protect the business from financial harm.
If something goes wrong in a corporate office and you have to close or make repairs, the financial viability of your entire corporation may be at stake. You must protect:
- your office space (if leased or owned).
- the building (if owned).
- any insurable interest in a nonowned building (e.g., improvements or betterments to office space).
In addition, you must protect your corporation from lawsuits and other damage claims made by current or former employees, customers, vendors or other third parties. Using a variety of business insurance policies, you can protect your corporate office from these perils.
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Property Coverage for Corporate Offices
Whether you operate a law firm or the offices of any type of corporation, your commercial offices need several types of property coverage to protect office space and other business personal property.
Commercial property insurance protects buildings and their contents, including computers, office equipment, furniture, artwork and all of your business personal property — whether it is owned or leased — if it is damaged by fire, smoke, theft, vandalism or some other covered peril.
You need this coverage for the contents of your office even if you do not own your office building.
If you sustain damage that forces you to relocate while you make repairs to your office space, business interruption coverage reimburses you for lost income and extra expenses (relocation expenses) during the closure or relocation period.
You may also need additional tailored property coverage. Talk to your Trusted Choice® insurance agent about your need for the following:
- Accounts receivable coverage: This covers loss of funds due to you that you cannot collect because your accounts receivable records have been damaged by a covered peril.
- Flood insurance: Your basic commercial property policy does not cover flood damage. Talk to your agent about flood insurance if you live in an area that is prone to these events.
- Computers and media coverage, or electronic data processing (EDP) insurance: This pays for lost data and related lost income if your computers or network are damaged by theft, vandalism, viruses or malware. It may pay for loss of data or software and for physical damage to computers or hardware.
- Employee crime and dishonesty coverage: This protects your business from the costs of theft, dishonesty and fraudulent acts committed by an individual employee or a group of employees. A basic standalone employee theft and crime policy provides coverage for forgery, alteration, theft, unauthorized electronic funds transfers, credit card fraud, computer fraud, money order fraud and counterfeit fraud. You can also add endorsements for additional coverage.
- Money and securities coverage: This provides coverage for theft, disappearance or destruction of money and securities inside your corporate office or outside your office while in the custody of a messenger.
- Sign coverage: This covers damage to outdoor signs, whether attached to your building or not, that is caused by vandalism, theft, weather or accidents.
- Utility interruption coverage: This provides income protection if you are unable to operate due to a covered utility (water, electrical) interruption.
- Valuable papers coverage: This reimburses you for costs to reproduce damaged documents as well as move records or provide temporary storage for financial statements, bank statements and other important or valuable papers if they are damaged by a covered peril.
A Note About Improvements and Betterments Coverage
Corporate offices that lease office space often make upgrades or improvements to that space at their own expense. Improvements or betterments are permanent additions or changes made to a building by a lessee at his or her own expense, which may not be legally removed.
This may include lights, carpeting, permanent fixtures and even full build-outs that are paid for by the lessee.
When improvements or betterments are made, they become a part of the building, but the lessee continues to have an insurable interest, or a “use interest.” If there is a fire and the improvements or betterments are damaged, the lessee suffers a financial loss.
Improvements or betterments that are paid for by a lessee may be insured by either the tenant or the building owner. The lease agreement should indicate which party’s commercial property policy should cover the specific improvements or betterments; otherwise, a dispute may arise if there is a loss.
Improvements and betterments coverage can be complicated and is highly dependent on the specifics of your lease.
Liability Coverage for Corporate Offices
Corporate offices need liability insurance to protect them from lawsuits and claims of third-party bodily injury or property damage. Some liability policies provide broad coverage for a wide variety of occurrences while others offer very specialized, tailored coverage.
Talk to your independent insurance agent about which types of liability coverage are right for your corporate office.
- Commercial general liability (CGL) insurance provides broad coverage against costly claims and lawsuits. If your business is accused of causing third-party bodily injury or property damage (e.g., a client injury at your office), the CGL policy pays for attorney fees, court costs, and any settlements or judgments that you must pay.
- Cyber liability insurance provides coverage in the event of a data breach involving your business. It helps pay for the costs of notifying affected clients, as well as public relations and investigations, and more.
- Professional liability/errors and omissions (E&O) insurance offers coverage for lawsuits related to providing negligent professional services or failing to perform professional duties. This type of coverage is recommended for any firm that provides professional services.
- Commercial umbrella insurance, or excess liability coverage, provides supplemental liability protection beyond the limits of certain other liability policies.
- Employment practices liability insurance covers you if an employee sues you for discriminatory employment practices.
Talk to Your Agent About Additional Business Insurance Policies
Corporate offices may need additional insurance policies that help keep employees healthy and happy. Talk to your independent insurance agent about the following:
- Workers’ compensation insurance: This protects employees from the costs of work-related illnesses and injuries and prevents you from being sued if an employee is injured at work.
- Employee benefits: Employee benefits, such as group health, life, dental and disability insurance are a great way to attract and retain quality employees. These benefits also help improve employee health and well-being.
Get Quotes for Corporate Office Insurance
An independent insurance agent can find customized quotes from multiple insurance carriers to make sure you get the corporate office coverage you need. Remember to use an apples-to-apples approach when shopping for business insurance.
Be sure that the coverage being offered is the same or similar across all of the quotes you evaluate. This is the best way to decide which policy best meets your needs and budget. Find a local independent insurance agent today.