Finding insurance for your small business does not have to be intimidating. Insurance for small business is called a business owner’s policy, or BOP. Business owners’ policies can be written for a wide variety of businesses and are often customized for each industry. The business owner’s policy streamlines multiple insurance lines into one policy tailored to the needs of that small business.
Business liability insurance protects a company from legal damages in the case of bodily injury or property damage to another property due to negligence or defective products. Liability insurance often protects both the owners and employees of the business. Liability insurance can also pay for the legal defense in the event of a lawsuit even when the company is not found to be at fault.
The business owner’s policy often contains extensive coverage for property owned by the business and the contents of those buildings. These coverages generally protect the property from fire, wind, and theft, but additional protection can be added for earthquake, hurricane, flood, boiler explosions, and other types of hazards to property. Ofteninsurance for small business is adaptable for the level of coverage available and how much is covered.
Business Interruption Insurance
A business can lose income in the case of interruptions and catastrophes such as power outages, fire damage, or inclement weather. Business interruption insurance can pay back the cost when a business is closed or requires relocation due to an interruption in business. Business interruption insurance can cover the use of another temporary location.
Many business owners’ policies have additional coverages that are adaptable to the type and size of the business. Data breach insurance can cover the storage and handling of customer and employee information if that information is stolen or hacked. Equipment breakdown insurance can cover any office equipment in case of breakdown, including machines, computers, and even copiers. Many business owners’ policies also have commercial auto insurance bundled with a business owner’s policy.
Most business owners’ insurance policies have some exclusions to their coverage. These exclusions often depend on the type of business, but coverage can be added for additional cost. Liquor liability insurance is usually one such exclusion. Professional liability insurance, also called errors and omissions insurance, can cover a business in case of a lawsuit where a customer or client claims negligence, error, or omission of information from a provided service. Should a law or ordinance change that affects the income of the business, a business owner’s policy would probably not be able to cover that loss of income. Workers’ compensation is another type of insurance not covered by the business owner’s policy, as it is specialized and has unique regulation from state to state. Health insurance is also not covered by a business owner’s policy, which is a property casualty insurance policy, and may require a different company that specializes in health insurance.
When insurance for small business is bundled into a business owner’s policy, it can make understanding and managing your company’s insurance easier. A professional and licensed insurance agent can give you a small business insurance quote that can suit your company’s needs.