The types of insurance you need to protect any business are: liability insurance, property insurance, and workers’ compensation. A smart business owner will opt to protect their assets by carrying these types of coverage. With the exception of workers compensation, it’s not mandatory, to carry property or liability insurance. There is a insurance package available for business owners called Business Owner’s Policy Insurance (BOP), that provides Business owner’s with property and liability insurance coverage at a very affordable price.
Because it’s recommended to have both, insurance companies offer these packaged policies for small companies as an option to purchasing separate policies. The size of the property determines who is eligible to benefit from a BOP. Most of your large high risk companies don’t meet the standard for a BOP, because of the size, it puts them in the high risk category. There are important factors that determine what trhe premiums will be. As stated above the size of the property, but also how the building is structured, what security features, and how financially stable the business is.
Business Owners Policy Coverage
1. Property Protection for building and contents.
2. Standard Perils, (fire and theft, although certain exclusions apply, such as damage caused by floods and earthquakes.
3. The business chooses the amount of liability coverage it needs determined by its assets.
4. Liability coverage pays for the cost of defending the business in a lawsuit and pays damages if the business is sued for injury or property damage.
5. The liability policy also pays the medical expenses of those injured, other than employees, as a result of business operations.
6. Supplies coverage for both business disruption and replacement costs if an emergency disrupts or wipes out the business. also covers in service expenses, such as payroll, which persist even when business activities have ended.
7. Replacement-cost coverage pays to replace damaged or stolen property, equipment and inventory
8. Businesses may pay for add-on coverage based on the specific risks related with the company. You never what to under or over insure your company when obtaining business insurance. As your planning with your agent to determine the amount of coverage you’ll need to include all company assets, property, equipment and whatever else your agent requires to insure the Business Owners Policy meets your needs.