As a small business owner, chances are you are exposed to various risks daily – many of these can be mitigated with insurance policies.
Some businesses require specific policies in order to meet regulations, while others simply want financial protection in case something goes wrong. Here are some of the most frequently purchased options for small businesses:
General Liability Insurance
Think of general liability insurance as an umbrella that will keep your business protected against the unexpected problems that could befall it, which could wreak havoc and devastate its finances. It covers legal costs and settlements related to customer injuries, property damage, advertising injury claims and more – an essential policy most small businesses need and without which qualifying for certain contracts and lease agreements could become much harder.
Companies that interact with the public, like retail stores or service-oriented businesses, must also ensure their employees understand the significance of this rule. Someone could slip and fall while visiting your store or an employee may accidentally damage a client’s outdoor sculpture during landscaping services.
When considering liability protection options for your company, low-risk firms may benefit from purchasing a business owner’s policy (BOP), which typically combines general and commercial property coverage along with workers’ compensation insurance. Complex businesses or those at higher risks may need additional or comprehensive protection through an umbrella policy; for assistance on selecting this coverage option contact an independent insurance agent today!
Business Owner’s Policy (BOP)
A business owner’s policy, or BOP, is like the Swiss army knife of small business insurance: it combines property, liability and business interruption coverage into one comprehensive package to protect your company from many common risks.
General liability coverage protects you against third-party claims of property damage and bodily injury, while commercial property coverage helps cover costs to repair or replace equipment, inventory and furnishings damaged in a fire or covered event. Business interruption protection typically extends coverage if you must relocate following a disaster event.
Many small businesses qualify for a Business Owners Policy (BOP), although eligibility varies based on location, business class and revenue. To get started with one online, just answer some simple questions and purchase the plan that meets your needs – that way your policy can begin immediately, with proof of coverage provided via certificate of insurance being delivered right to your mailbox and managing it 24/7 with our mobile app – making the whole experience fast, simple and free!
Workers’ Compensation
Business insurance provides your company with a financial hedge against lawsuits and other financial risks that could derail it. Even defending against small claims can be expensive; any judgment awarded against you could completely wipe out its assets.
Workers’ compensation provides medical and wage replacement benefits if an employee is injured at work. It also covers death benefits to dependents of any worker killed while on the job; rates differ by state and are usually determined based on payroll.
Brokers can assist small businesses in understanding and selecting coverage that best meets their needs and budget. Brokers will research policies, request quotes, explain differences between policies and providers, assist in filing claims and help small businesses feel at ease when seeking insurance policies – many find them well worth the investment in peace of mind! Though insurance may not be legally mandated for running successful businesses, having adequate protection can make an integral contribution towards running successful enterprises; without it any damages or losses would fall solely onto them.
Property Coverage
No matter if you’re freelancing as an additional source of income, launching a startup, or running your own small business full time – commercial insurance provides essential protection from various insurable risks that threaten financial loss for any of them. Some policies are required by law while others provide comprehensive coverage that scales with your business as it grows.
Commercial property coverage provides your business with reimbursement of the costs to repair or replace its building and any contents damaged in times of fire, flood, natural disaster or operational difficulties such as bad weather events. In addition, this policy covers lost income if operations must cease temporarily due to operational problems like these.
General liability and business interruption coverage is often included at a discounted rate in one package known as a business owner’s policy (BOP). Other forms of business insurance, such as professional liability coverage to defend against accusations of negligence or failure to meet client expectations; workers’ compensation which pays medical expenses, wages and lost time compensation when employees get hurt on the job – cost will depend upon state regulations and your revenue stream.
Commercial Auto Insurance
There are approximately 30.7 million small businesses in the US, and each has different insurance needs. There are certain policies all companies should consider though; such as general liability coverage, professional indemnity (also referred to as errors and omissions coverage), or product liability.
Reason being, these policies offer small businesses protection from unexpected financial losses that they cannot cover themselves, such as legal fees and settlement costs incurred as the result of lawsuits. Without coverages in place, businesses could experience serious repercussions that threaten both their business operations and reputations.
As such, the IRS considers most policies tax-deductible for small businesses. Since having appropriate coverage can protect from events that would otherwise cause closure of a company, this investment makes sense for small companies. Therefore, it’s crucial that small business owners discuss their insurance needs with an experienced broker-agent so they can find coverage suitable to their unique business model.
