Why Business Owners Insurance Can Benefit Your Small Business

Business Owners Policy, otherwise known as BOP, may well be the key to protecting any small business. Composed of a few types of coverage, each usually acquired on its own, the bundled plan offers small commercial businesses business premiums as they obtain better insurance coverage.

What does the standard policy for business owners include? This commercial policy usually consists of:

• General liability coverage

Commercial liability insurance helps a business owner if a customer is injured on the property and sues for his medical care. Coverage includes hospital and medical costs as well as defense costs. It can also benefit the company if there is “advertisement damage” related to claims such as copyright infringement, libel and defamation.

• Property coverage

Commercial property insurance is often also referred to as named peril insurance, open peril insurance or special insurance. This can cover the owner in the event that there is property damage to a rented space or premises that the business owner actually owns.

• Business interruption coverage

Business Interruption insurance helps the insured when rain, wind or snow storms, or cyber hacking and/or other universal events occur and disrupt the normal operation of the business. The insurance will pay for business losses or finance the use of another temporary property while the company operates the business until the permanent ground has been repaired.

The big advantage of owning a Business Owners Policy is that the standard coverage can be tailored to your individual needs as a small business owner. After an assessment with an experienced independent agent, you will be guided to determine which additional types of coverage suit your industry, operation size and earnings and will benefit you and your business by being included in the policy. What’s more, your agent can schedule regular reevaluation times if your needs have changed and add or subtract different types of coverage based on the assessment, so you have the protection when you really need it.

Take a look at this scenario to understand what a related custom policy might mean.

A sole proprietorship grew until it included a few more employees. The husband’s insurance specialist discussed the growth with the business owner, and together they decided that workers’ compensation insurance as well as disability insurance should be added to the standard offering. This met government requirements and gave the business owner the extra protection he needed in the event an employee was injured on the job.

For more on the subject, be sure to speak with an experienced independent insurance agent.

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