How To Obtain Business Owners Policy Insurance
As a small business owner, you want to protect your company from a variety of issues that could result in a significant financial loss.A fire, for example, could destroy your building and office equipment, resulting in lost business income.Alternatively, your company could be sued if a customer is injured while visiting your store.
Fortunately, the best small business insurance companies combine three essential types of coverage that can assist you in recovering from common problems.It is a practical solution that can also assist you in saving money.See things that you should know about a business owners policy.
What Exactly Is a Business Owners Policy Insurance?
A business owners policy (BOP) combines three types of coverage into a single policy:
- Commercial Property Insurance – Insurance for commercial property
- General Liability Insurance – Insurance against general liability
- Business Interruption Insurance – Insurance for business interruption
Your BOP is not limited to these three types of coverage.Additional coverage types, such as liquor liability insurance and equipment breakdown insurance, are typically available to help you tailor a policy to your specific needs.Many small and medium-sized businesses, such as retail stores, contractors, restaurants, and wholesalers, prefer a BOP.
What Are The Things Business Owners Policy Cover?
Here’s an overview of the main coverage types that are typically included in a business owner’s policy:
General Liability Insurance:
General liability insurance protects a company from a variety of claims, including infringement of intellectual property, reputational harm, advertising injury, bodily injury, and property damage.
- If you are accused of using someone else’s copyrighted work in your business ad or other marketing materials without their permission, you may face copyright infringement claims.
- If you say something negative about another business owner or business in a television, print, or online interview that hurts their business, you may suffer reputational harm.
- Advertising harm can occur if your company defames another person, company, or business owner.
- A common insurance claim is bodily injury caused by your business.If someone is injured in your office or store, a general liability policy will cover their medical expenses.A simple fall by a customer could result in a bodily injury claim.
- Another common liability insurance claim is property damage.As a business owner, you may be held legally liable if another person’s property is damaged while visiting your establishment.Damage to a client’s home or other property while you are visiting them on business is also a claimable event.Damage to electronic data can also be covered under property damage coverage.
Despite your best efforts, these types of claims can arise unexpectedly.If you don’t have a general liability policy as a financial safety net, a $20,000 slip and fall claim could be disastrous for your business.You will have to pay for the claim out of your own pocket if you do not have insurance.A large enough claim could be enough to bring your company to its knees.
Furthermore, clients may require general liability insurance before doing business with you.You’ll need general liability insurance for your business to expand your client base.
Commercial Property Insurance:
Commercial property insurance safeguards a company’s physical assets.This includes your business structure, equipment, tools, inventory, computers, office furniture, valuable papers, and business records.
If your commercial property is damaged in a fire, theft, or other problem covered by the policy, commercial property insurance can pay for replacement costs.It’s also known as commercial property insurance.
Business Interruption Insurance:
Business interruption insurance assists a company in recouping lost income.If you are unable to open your doors due to a covered problem, such as a fire or windstorm, this type of insurance reimburses you for lost business income.
Business interruption insurance can also cover the costs of renting temporary space to remain open.This is also referred to as business income insurance.
What Isn’t Covered by a Business Owners Policy ?
For small business owners, a business owners policy Insurance is a convenient insurance option.However, there are numerous potential issues that are not addressed by a BOP.Additional insurance policies are required for these.Here are some examples:
Commercial auto insurance – Insurance for commercial vehicles
A vehicle used for business is covered by commercial auto insurance.There is also coverage for hired and non-owned vehicles.This type of coverage will protect you if you are currently renting a car for work or driving your personal car for work.
Cyber Liability Insurance – Insurance for cyber liability
Cyber liability insurance covers the costs associated with assisting your company in recovering from cyber threats or breaches involving computer systems and data.Account numbers, credit card numbers, driver’s license numbers, health records, and Social Security numbers are examples of sensitive customer information.
Errors And Omissions Insurance – Insurance against errors and omissions
Professional liability insurance is another name for errors and omissions insurance.This covers claims made if you make professional errors.Anyone who gives advice, makes recommendations, or represents the needs of others may want to consider purchasing professional liability insurance to protect their business.
Equipment Breakdown Insurance – Insurance for equipment breakdown
Equipment breakdown insurance pays to repair or replace equipment that is damaged or stops working unexpectedly.It covers equipment failure caused by motor burnout, power surges, electrical shorts, and mechanical failures in general.
Liquor Liability Insurance – Insurance for liquor liability
Liquor liability insurance protects your business from claims of bodily harm and property damage caused by an inebriated person after you sell or serve them liquor.Dram shop insurance is another name for liquor liability insurance.
Workers Compensation Insurance – Insurance for workers’ compensation
Workers’ compensation insurance compensates employees who are ill or injured at work.It is required in the majority of states.If you have even one employee, you must purchase workers compensation.
What Is the Purpose of a Business Owners Policy?
Businesses that exhibit these characteristics are excellent candidates for a business owners policy Insurance.
- A physical location-based business, such as a home-based business or a store or office space.
- A company with assets that can be stolen, such as products, cash, computers, inventory, and office furniture
- A company that is at high risk of being sued
- A company with fewer than 100 employees and sales of less than $5 million.
- A company located in an area prone to severe weather, such as hurricanes.
Here are some examples of small businesses that would benefit from a BOP insurance:
- Religious institutions
- Restaurants or Eateries
- Manufacturers
- Technologist and Tech consultants
- Retailers
- Wholesalers
What Is the Price of a Business Owners Policy?
According to Insureon, a business owners policy costs an average of $57 per month.The cost of your BOP will differ depending on factors such as:
- Your company’s location
- The size of your company
- Property worth
- Your line of work
- The amount of insurance coverage purchased
- The insurance deductible
- Employees’ number
- History of claims
A business owners policy insurance is frequently less expensive than purchasing separate policies for liability, property, and business interruption.
Is a Business Owners Policy Right for Your Small Business?
When determining whether a business is eligible for a BOP, insurance companies consider several factors, including the type of business, the size of its primary location, and revenue.
Business insurance companies also take into account the company’s financial stability, building construction, security features, and fire hazards.If you pass all of these tests, you will be eligible for a BOP insurance.
How to Find the Best Business Owners Insurance?
A BOP includes three important types of coverage: general liability insurance, commercial property insurance, and business interruption insurance.However, you can supplement your policy with additional coverage types if necessary.
Here’s how to find the best business owners insurance:
Evaluate the risk in your company:
Your small business faces risks that are unique to your industry.You can add coverage types to your BOP to tailor it to your company’s specific requirements.For example, if your company handles sensitive customer information such as health records and Social Security numbers, you should consider including cyber liability insurance in your BOP.
Compare Policies:
Because insurers do not price their policies the same way, compare small business insurance quotes from various insurance companies.Free quotes are typically available online or by speaking with an independent insurance agent.
Every year, reassess your risks:
Your liabilities may change as your company grows. For instance, if you hired more people or expanded the types of services you provide.It’s a good idea to reassess your risks once a year and consult with your insurance agent if you require additional coverage.