Business liability insurance covers the insured's legal liability for damages caused by bodily or material injuries, and it also covers personal injuries and commercial injuries. The security system on this website has been activated. Completing the next challenge shows that you are a human and gives you temporary access. A BOP consists of general liability insurance and commercial property insurance.
Neither policy is required by law. However, many of the people you do business with are likely to have general liability insurance requirements. You may need this policy if you want to sign a customer contract with these requirements. Proof of general liability coverage is also required to apply for certain professional licenses.
A business owner's policy covers you and your employees, but it doesn't normally include insurance coverage for independent contractors. The BOP for travelers includes many specialized coverages that can be adapted to the unique risks your company faces. In general, commercial property must be stored or maintained in a vicinity that meets the requirements of commercial facilities (for example, within 100 feet of the facility). The policy for business owners offers several insurance products in one, generally aimed at small and medium-sized businesses.
Depending on the state in which your business is located, you may be legally required to take out workers' compensation coverage. Business owner insurance generally includes property insurance, business interruption and liability insurance. If you're a small business owner, a business owners policy (BOP) protects you from liability claims and lawsuits; protects your buildings, equipment, and inventory; and covers you financially if your business closes unexpectedly due to a covered loss. Insurance providers may have requirements regarding the location of the business, the size of the location, the revenue and the type of business.
The BOP will also cover any item owned by the business or item that is owned by a third party but that is temporarily held in the care, custody, or control of the business or business owner. A business owner's policy combines general liability insurance and commercial property insurance into a single policy and is generally less expensive than buying the coverages separately. With business interruption insurance included in the BOP, the insurer covers the loss of income resulting from a fire or other catastrophe that disrupts the operation of the business. Commercial package policies (CPP) are usually taken out by larger companies with greater risks, including small or medium-sized businesses with multiple employees.
The general liability part of a BOP protects your company in the event that someone files a claim against you or your company. In general, the classes of businesses that qualify for BOPs include retail stores, apartment buildings, small restaurants, and office-based businesses. Protect your company from liability risks derived from professional services, advice or recommendations provided by your company. Commercial property insurance, sometimes called commercial hazard insurance, can pay for the repair or replacement of damaged, stolen, or destroyed commercial property.
