Wolf Administration Urges Proper Coverage for Home-Based Businesses, Offers Small Businesses Tips for Storm Damage Claims

HARRISBURG, Pennsylvania, May 1 -- The Pennsylvania Insurance Department issued the following news release:

Insurance Commissioner Jessica Altman today announced her department, as part of the Wolf Administration's support for entrepreneurs during National Small Business Week, has two brochures available to help home-based business owners make sure they have proper coverage, and help small business owners file claims after storm damage. These brochures, along with other insurance-related information for businesses, are now included on a new Business Insurance page which can be accessed by clicking on the Business icon at www.insurance.pa.gov, under Insurance Coverage Resources.

"Many Pennsylvanians run businesses out of their homes, but many may not have the insurance coverage they need to protect their investment and their income," Altman said. A survey by the Independent Insurance Agents and Brokers of America showed nearly 60 percent of home-based businesses surveyed did not have proper business insurance coverage.

Home-based business owners should not rely on their homeowners' coverage to protect their business, Altman said. The Insurance Department's new brochure notes many homeowners' policies cover only up to $2,500 for damages to business property. Homeowners' policies also may not provide coverage:

* If a customer or employee gets hurt at the home-based business property;

* For lost income because of damage to the home;

* If a client's data is stolen.

There are several other questions home-based business owners should consider when deciding on the coverage needed to protect their business, including:

* Is business equipment or business inventory stored at home;

* Do customers visit the home, and are items delivered to the home;

* Are vehicles driven for the business.

"I encourage home-based business owners to conduct an inventory of equipment, furniture, and everything used to operate the business, then meet with an insurance professional to make an informed decision on what protection is needed," Altman said.

The Insurance Department also unveiled a brochure with tips for owners whose business is damaged by a storm.

"Business owners should contact their insurer as soon as possible after their property is damaged by a storm, follow instructions from the insurer, and keep a record of people to whom they spoke," Altman said. "Also, keep all receipts, and provide the insurer all information needed to avoid delaying payment of a claim."

The "After the Storm for Business" brochure also advises business owners take photographs or video of damage before beginning clean up or repairs. Business owners should keep track of:

* Damage to the business property;

* Damage to property owned by others, such as customers, but that is in the care, custody, or control of the business;

* Lost business income;

* Extra expenses caused by the claim.

Altman said business owners should make repairs necessary to prevent further damage, but not make any permanent repairs before the insurance company is able to inspect the damage and approve the repairs. She also said owners should not rush to settlement, and be prepared to negotiate with their insurer if repair estimates differ.

If a claim is denied, business owners should review their policy and may file an appeal with the insurance company's claim manager. Business owners can also contact the Insurance Department's Consumer Services Bureau on line at www.insurance.pa.gov., or at 1-877-881-6388.