If you have a small business, you may want a business owners policy to protect your assets.
Business owners’ policies often combine many of the most critical, standard insurance elements for small businesses in low risk industries. A standard BOP may include:
Property Insurance: This coverage can protect your business’ products, assets and location in the event of an incident. Covered incidents may include theft, fire, vandalism or certain weather damage.
General Liability Protection: Every business, regardless of its operations, poses risks to its customers. Your products may cause harm to buyers. Even your property could harm others. For example, if a customer falls and breaks a leg in your establishment, they might sue the business. Your liability insurance may help you compensate the injured party in this case.
The minimum type of BOP only comes with commercial property and general liability insurance, but many business owners also add:
Professional Liability Coverage: Should you or your employees make a professional mistake, it might cause harm to a client’s financial assets or reputation. You might be able to use professional liability coverage to help pay costs associated with these damages.
Business Interruption Coverage: Should severe weather or fire strike your business, you may have to close for a period of time to recover. This coverage can help you manage essential costs to re-open the business on time. It may help you pay bills or suppliers, and even compensate your employees.
Umbrella Liability Coverage: Umbrella liability insurance covers gaps in your other liability insurance policies.
BOPs may contain much more than just this standard coverage. You may be able to get additional coverage, such as cyber liability or accounts renewable protection.
Why You May Need More Than a BOP
BOPs are not foolproof. They are excellent for basic insurance coverage. However, they often don’t cover all the risks your business might face.
Therefore, you should talk to their insurance agent. Your agent can help map out how a standard BOP policy can meet your company’s needs. They can then determine the additional coverage you may need.
You might buy extra policies for:
- Workers compensation
- Commercial auto insurance
- Health and disability insurance
Every business is different as are your commercial insurance needs. Be sure to ask your insurance agent about adding coverage to your business owners’ policy in order to completely protect your business in case of an accident.