Whether you own a large business or run a small business out of your home, you should consider the following insurance policies to protect your business:
Property Insurance– Compensates you if the property you use in your business is lost or damaged as the result of various types of common “perils” such as fire or theft. Property insurance covers a building or structure and its personal property: office furnishings, inventory, raw materials, machinery, computers and other items vital to your business operations. Property insurance may also provide operating funds during a period when you are trying to get the business back on track after a catastrophic loss. Depending on the type of policy you have, it may include coverage for equipment breakdown, removal of debris after a fire or other destructive event. Our agents can help determine what property insurance policy best suits your business.
Liability Insurance– Any enterprise can be sued. People may claim that your business caused them harm as the result of a defective product, an error in a service or disregard for another person’s property. Your liability insurance pays damages for which you are found liable, up to the policy limits, as well as attorneys' fees and other legal defense expenses. It also pays the medical bills of any people injured by your business.
Business Vehicle Insurance–Many personal auto insurance policies exclude coverage if the vehicle involved in an accident is used mainly for business. A business auto policy provides coverage for autos owned by a business. If you use your car for business purposes, talk to one of our agents to see if a business vehicle policy is best for you.
An extremely small business, such as one operated by one or two people out of a home, may not need the same coverage. But it often needs more property and liability insurance than is provided in a typical homeowners policy. Contact one of our experience agents today to determine what type of home-base or small business insurance best suits your needs.
Insurers often combine a number of coverages into a package that is sold as a single contract. The advantage of a package policy is that it offers a broad variety of coverages for small businesses at a price that is usually lower than if the same coverages were bought separately. The most common type of package policy is the Business owners Policy or BOP.
A Business owners Policy (BOP) combines coverage for all major property and liability insurance risks as well as many additional coverages into one package policy suitable for most small businesses.
A BOP includes business income insurance. This compensates you for the business income you may lose following a disaster. Disasters typically disrupt operations and may cause you to vacate your premises. The BOP also covers the extra expense you may incur if you must operate out of a temporary location.
To cover specific risks associated with your business, you may purchase a variety of additional coverages to add to the basic BOP. For example, the BOP doesn’t cover outdoor signs unless you specifically add coverage and pay an additional premium. If your business relies on electronic commerce, you may want to add coverage for lost income and extra expenses in the event your ability to conduct e-commerce is slowed down or stopped due to a computer virus or hacker.
Only small- to medium-sized businesses that meet certain criteria are eligible for a BOP. In addition, a BOP does not include all the coverages you may need. It does not cover professional liability, auto insurance, life, health and disability insurance. You will need separate policies for those. Contact one of our experienced agents to see if you qualify for a BOP.