Ordinance or Law Coverage

Protect Your Business from Local Ordinance Changes: Get Ordinance or Law Coverage Today

Small businesses often don’t realize the importance of ordinance or law coverage as part of their insurance plan. Ordinance or law coverage covers changes in building regulations and laws that may impact a business, such as zoning ordinances or laws dictating how improvements must be made to a facility. Without this coverage in place, a business could find itself unable to meet local ordinances and be left with hefty fines and penalties.

One example of where ordinance or law coverage would come in handy is with accessibility regulations. Local jurisdictions all have different requirements for accessibility throughout buildings, including ramps, elevator access, railings and other features. If an existing property needs modifications to comply with new accessibility regulations, an inadequately insured business could give up a considerable portion of its budget making upgrades necessary for compliance. With ordinance or law coverage included in an insurance policy, however, costs associated with these updates are typically covered as long as the policy limit is high enough to cover them. 

In addition to covering modified costs due to updated ordinances, many policies include demolition coverage which covers any unforeseen demolition costs that may arise if the business were required to demolish parts of the structure it owns due to changes in local laws. Alongside demolition expenses, additional removal costs are also usually covered if they need to be incurred after demolishing part of the property. All of this added protection can give businesses peace of mind knowing that they are protected against unexpected expenses related to changes in legislation. 

When looking into ordinance or law coverage for small businesses there are several things to consider when choosing a policy: 

1) Is there adequate coverage for items forced by changing legislation? 

2) Are there limits on losses caused by demolitions? 

3) Are there provisions for renovations needed after demolitions? 

4) Does the policy provide any kind of legal representation if needed during an investigation from local authorities? 

5) How much does the premium cost relative to possible damages if items weren’t insured?  

By having answers for each one of these questions when selecting a policy, small businesses can make sure that they get adequate ordinance or law coverage so they avoid potential financial losses due to outdated building regulations. With this type of coverage businesses can rest assured knowing they will not be stuck paying costly fines and penalties due to new laws and regulations put into effect over time.