Entrepreneurship Series | Return to Underwriting Special Commercial Products

Investigate your possibilities for new business with our new Entrepreneurship Series – Home Based Business Policy. This new program is designed to provide coverage for the policyholder operating a business from their private residence or related private structure. It provides a Businessowners Policy for a less expensive minimum premium than a regular Businessowners Policy. The policyholder can also purchase additional coverage forms which enhance our current BOP coverages. If your customer has a beauty salon or barber shop in their residence they can purchase additional coverage which will provide the state-required Beauty Shop/Barber Shop Professional Liability coverage and a variety of enhanced BOP coverages.

New Program for Home-Based Business | Policy Coverages | Types of Eligible Risks

Please review the Entrepreneurship Series information and contact your underwriter if you should have any questions. We are confident this new program will provide your customers with the proper coverage for their Home-based Business.

New Program For Home-Based Business:

Your personal lines policy does not provide liability for business operations, and only provides $500 Business property coverage while on the insured premises.

Our new Home-based Business program will provide coverage for your business liability and your business property at Actual Cash Value or Replacement Cost. Here are the qualifications for this new program:

  • The Business must be located in the insured’s residence or related private structure.
  • Fulmont Mutual Insurance Company will write the Homeowner, Mobilehomeowner or Farmowner policy, to avoid any problems with liability coverages should a loss occur.
  • Your Homeowner liability limits must match your business policy liability limits.
  • Use our current Businessowners Manual to rate your business property coverage. If your premium is less than $100., the new Home-based Business program minimum of $100. will apply. You may attach the new Home-based Business Broad form FMIC HOB-1 if your customer would like to expand our current Businessowners policy coverage. This form will cost $50.00. The additional coverages are listed below.
  • If your Home-based Business is a Beauty Salon or Barber Shop you may attach Home-based Business Broad Form FMIC-HBB-1. This form will expand the current Businessowners policy coverage and also provide the state-required Beauty Shop/Barber Shop Professional Liability. The additional coverages are listed below.

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Policy Coverages: 

Our current Standard Businessowners Policy Coverages:

  • Additional Expense - $1,000
  • Loss of Income - Actual up to 3 mos.
  • Fire Legal - $50,000
  • Products Coverage - Automatic
  • Liability - OLT - 100,000
  • Medical Payments - 500/10,000

Our current Deluxe Businessowners Policy Coverages:

  • Additional Expense - $1,000
  • Loss of Income - Actual up to 6 mos.
  • Fire Legal - $50,000
  • Accts. Receivable - $1,000
  • Empl. Dishonesty - $1,000
  • Exterior Signs - $1,000
  • Money & Securities - $1,000
  • Personal Injury - Included
  • Seasonal Variation - 25% of Business property limit for stated 90-day period
  • Valuable Paper/Records - $1,000
  • Products Coverage - Automatic
  • Liability BGL - 300,000
  • Medical Payments - 1,000/25,000

Please review the list of eligible risks to determine if your customer’s Home-based business would be eligible for our new program. Please contact your underwriter if you have any questions regarding rating, eligible risks or coverages.

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Types of Eligible Risks:

  • Bakeries
  • Balloon Shop
  • Barber Shop & Beauty Salon
  • Bicycle Shop
  • Book, Card or Magazine Shop
  • Candy, Nut, Confectionery Store
  • Clothing Store
  • Florist
  • Game, Toy, Hobby Store
  • Gift, Novelty, Souvenir Store
  • Record, Tape, Video Store
  • Retail, NOC
  • Tailor, Shoe Repair, Other Service Classes
  • Office Class

The Broad Form coverage for Home-based Businesses (Form FMIC HOB-1 ed. 7/98) provides the following enhanced Businessowners Policy coverages for an additional premium of $50.00:

  • Accts. Receivable - $5,000
  • Empl. Dishonesty - $2,500
  • Exterior Signs - $2,000
  • Money & Securities - $2,000
  • Loss of Earnings - Interruption of Off-Premises Power, Water, Communications Systems - $1,000. All loss - one event; $2,500 - all events during policy period.
  • Valuable Paper/Records - $2,000
  • Transportation Cov. - Merchandise $5,000. Per occurrence - while aboard conveyance of common/contract carrier; or $1,000. Per occurrence while conveyed by you.
  • Employer’s Non - Ownership Auto

If your customer operates a Barber Shop or Beauty Salon, we can provide the above Broad Form coverages and the required Beauty or Barber Shop Professional Liability (Form FMIC HBB-1 ed. 7/98) for an additional premium of $71.00 for Barber Shops or $88.00 for Beauty Salons.

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Return to Underwriting Special Commercial Products