Starting a business takes a lot of time, energy and money. It’s one of the largest investments you can make. Protecting that investment is the second. It’s critical to every business’ success to have the right amount of insurance, but how do you know what insurance your business needs?
Each industry has its own requirements and standards. This applies to insurance requirements, as well. But every business shares the same necessity: liability and property. With a business owners’ policy, you can find a cheaper rate for both liability coverages and property coverages for your business.
- Bodily Injury Liability: This liability coverage provides compensation if a client or third party is injured due to everyday business activity.
- Property Damage Liability: This liability coverage provides compensation if a third party’s property is damaged due to everyday business activity.
- Product Liability: If a product produced, made or sold by the company causes bodily injury or property damage, product liability provides compensation for the incident.
- Property Coverage: One of the most important parts of a company are its physical assets. Property insurance provides compensation if the structure or other owned property of the business is lost or damaged due to a covered incident. Covered dangers include fire, lightning, smoke, hail, windstorms, theft, vandalism and more.
- Business Interruption Insurance: This type of insurance is crucial if your business is rendered inoperable due to a disaster. Business interruption insurance helps compensate for lost income when the business is unable to run while repairs are being made.
Who Qualifies for a Business Owners Policy?
Most small businesses with a physical address may qualify for a business owners’ policy. Small businesses typically invest in a business owners’ policy because it is relatively affordable compared to other business packages and contains important coverages that every industry needs. Business owners’ policies are generally less flexible than other business policies, however. If you’d like to expand your company’s BOP, you can add an umbrella insurance policy, which provides added protection when your other liability coverages reach their limits.
How Much Does a BOP Cost?
The cost of a business owners’ policy varies depending on the size of the company, the industry and the coverage limits. On average, a BOP costs about $100 a month ($1,190 a year). Consider your business’ unique requirements and insurance needs before speaking with an agent about a business insurance policy.