If you're a business owner, you know that having the right insurance coverage is essential for protecting your business from potential losses. But with so many types of insurance available, it can be difficult to determine which ones are right for your business. A Business Owners Policy (BOP) is a great option for small and medium-sized businesses, as it combines general liability insurance, commercial property insurance, and business interruption insurance. General liability insurance protects you from claims related to business operations.
If someone is injured on your business property or if you damage someone's property, this insurance covers the cost of your defense and any damages granted to you. Any company that works directly with customers needs general liability coverage. Commercial property insurance safeguards the physical location of your small business and your business equipment, computers, and office furniture. Small businesses with movable commercial assets can take out inland marine insurance to protect their equipment, products, or materials while in transit by truck or train.
Business interruption insurance helps cover lost income or operating expenses if your business is forced to close due to a disaster such as a fire, flood, theft, building collapse, or civil authority incident. BOE insurance covers the cost of running your business (based on actual expenses, including utility bills and employee salaries) if you become disabled and can no longer operate your business.
Professional liability insurance
covers claims related to errors or omissions in professional services. Product liability insurance covers claims related to product defects or injuries caused by using a product.Cyber liability insurance protects against losses caused by technological disasters such as data breaches or cyber-attacks. Finally, commercial car insurance provides coverage for vehicles used for business purposes. If you use a vehicle for business purposes, you'll need to purchase a separate policy from your personal auto policy. Financial lenders, homeowners, licensing boards, and business customers often require general liability insurance before doing business.
By understanding the types of commercial insurance available, you can ensure that your business is properly covered in the event of an accident or disaster. Alex Roje, partner at Lathrop GPM, said that every small business owner must evaluate their specific needs and responsibilities to develop the combination that best protects their business.
