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Northwest Insurance Agency established its In Home
Business Program in 2001. The Program is designed
for small businesses, which are operated out of a
person's home. These entrepreneurs may find it difficult
to obtain appropriate insurance through a conventional
commercial lines approach. Yet the homeowner's policy
on the residence normally excludes any losses arising
from "business pursuits."
The types of enterprises specifically targeted are individuals
engaged in the retail distribution of products and/or
services with operations based from their place of
residence. Professional Liability is excluded on
all classes.
ELIGIBILITY: An In-Home Business includes a retail or service business
operated from the insured's place of residence and
having the following characteristics. It must:
- Be operated by the insured and/or another immediate
family member who resides in the Insured's household.
- Employ no more than ten (10) employees, other than independent
contractors.
- Be incidental to the occupancy of the building as a
private residence
RISK SIZE LIMITATIONS: Risks exceeding the size limitations
listed below will be declined.
- Maximum of $50,000 business personal property
- Maximum Gross annual receipts of $250,000 for sale merchandise.
- Maximum Gross annual receipts of $500,000 for a service business.
UNDERWRITING
GUIDELINES: All risks must meet the following Underwriting
Guidelines.
- Building coverage not available
- The limit business property must equal 100% of replacement value
- The applicant does not own any business under the same
legal name as this business which is operated at a different location
- The dwelling cannot be located within 1,500 feet of
salt water in a coastal county on the Gulf Of Mexico
or the Atlantic Ocean
- The applicant does not repackage food or personal care
products to be sold under their label
- The applicant is not involved in the sale of manufacturing
or explosives or propellants
- The applicant does not install any products, excluding
computer systems, office equipment, Security devices,
or draperies.
- There have been no more than two claims of any type in
the previous three years
- There has been no single claim for more than $25,000 in
the previous three years
OPTIONAL COVERAGES:
- Money and Securities (Up to $10,000 on premises and $5,000
temporarily off premises)
- Electronic Data Processing equipment, Data and Media (Not to
exceed $25,000). The Sub limit for off-premises
EDP coverage is $5,000.
- Additional Business Personal Property (In excess of the $5,000
automatically provided)
- Optional Liability Limits of $500,000 and $1,000,000
- Additional Insured's: Controlling Interest (in the business);
Owner or Lessor of the leased land; Manager or lessor
of premises; Lessor of leased equipment; Co-owner
of insured Premises; Grantor of Franchise; or State/Political
Subdivision (for permits relating to The premises)
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