Why Business Owners Insurance Can Benefit Your Small Business

The Business Owners Policy, also known as BOP, is arguably the key to protecting any small business. The small commercial enterprise bundled plan consists of a few forms of coverage each usually purchased separately and offers discounted business premiums as they take advantage of better insurance coverage.

What does the standard policy offer to business owners? This trading policy usually consists of:

• General liability coverage

Business liability insurance helps a business owner if a client is injured at the property and sues for his medical care. Coverage extends to hospital and doctor costs, as well as defense costs. It can also benefit the company if there are “advertising damages” related to claims such as copyright infringement, libel and defamation.

• Property coverage

Commercial property insurance is often also referred to as peril insurance, open peril insurance, or specialty insurance. This can cover the owner in case there is material damage related to a rented space or property that the entrepreneur actually owns.

• Business interruption cover

Business interruption insurance helps the insured when rain, wind or snow storms, or cyber hacking and/or other universal events occur and disrupt regular business operations. The insurance pays for business loss or provides financing for the use of another temporary property in the course of running the business until the permanent location is repaired.

The big advantage of having a business owner policy is that 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 what other types of cover are appropriate for your industry, size of operation and income and would benefit you and your business by being included in the policy. In addition, your agent can schedule regular times for re-evaluation if your needs have changed and add or subtract different forms of coverage according to the assessment, so you get the protection when you really need it.

Review this scenario to understand what a related custom policy might mean.

A one-man business grew until a few more employees joined. The man’s insurance specialist discussed the growth with the entrepreneur and together they decided that employee insurance and disability insurance should be added to the standard offer. This met government requirements and gave the business owner the extra protection he needed in case an employee was injured on the job.

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For more information on this subject, it is best to contact an experienced, independent insurance agent.