Business Insurance – What You Need to Know

assurance pro protects your company against the financial impact of certain risks. These include property damage, lawsuits and lost income.

Some providers offer industry-tailored policies or a bundled Business Owner’s Policy. Next, for example, offers a digital certificate of insurance that’s easy to share with clients or landlords. It also provides general liability and business interruption coverage in one package.

Business Property Insurance

Businesses need to protect their buildings, inventory and equipment from a wide range of disasters. The right commercial property insurance can help pay for rebuilding and getting operations back up and running after a loss.

Business property insurance is usually included in a small business owner’s policy (BOP) or can be purchased separately. It protects a company’s buildings and contents from damage or theft, including things like fire, explosions, burst pipes, windstorms, vandalism and earthquakes. Floods and mudslides are typically excluded, although you can buy additional coverage for these perils.

A property insurance policy also usually includes business interruption coverage, which pays a business’s lost income after a covered event. This type of coverage can cover rent or lease payments, moving costs, utility expenses and loan payments. It doesn’t usually include losses related to a pandemic or viral outbreak, however, as insurers have begun editing their policies to exclude such coverage. Many states require business owners to carry this type of insurance.

Business Liability Insurance

Whether your office gets robbed or a client slips and falls in your workplace, business insurance can help cover the cost of legal fees, medical expenses, property damage, and lost income. It’s usually required by law or a lease.

Also known as commercial general liability insurance, this is a foundational policy for most businesses. It protects against claims that your business caused third-party bodily injury or property damage (except for workers’ compensation, which is covered by workers’ comp). This policy may be combined with commercial auto insurance in a business owner’s policy (BOP) or a commercial package policy (CPP) for larger businesses.

Some states require specific coverage, like workers’ compensation and commercial auto. And some industries have additional industry-specific regulations, such as requiring doctors to carry malpractice insurance or lawyers to have errors and omissions (E&O) insurance. In addition, there are a number of additional specialty policies you can purchase to help with unique risks.

Business Auto Insurance

If you or your employees use a car, truck or van for business, you may need a business auto policy. This coverage includes liability and physical damage protection for vehicles that your business owns, leases or borrows. It also can include personal automobile coverage for employees who drive company cars or trucks on business-related trips. This part of a BAP may be especially important if you or your employees provide rideshare services like Uber, Lyft or taxis.

In some states, a separate hired and non-owned auto insurance (sometimes called “non-owned auto liability”) section is added to the BAP. This provides excess insurance over your business auto policy’s limits if an employee drives a non-company vehicle to perform work duties. Your independent agent can help you determine the best type of commercial automobile coverage for your needs. They’ll take the time to understand your operations and vehicle usage so you can get optimal coverage at a great price.

Business Owner’s Policy (BOP)

A business owner’s policy (BOP) is a simplified bundle of at least two essential business insurance coverages. It’s designed to help small businesses save money and address most of their primary business risks.

A BOP typically covers commercial property/business personal property and general liability. The former protects against damage to movable property owned or leased by the business, and the latter protects the company from claims alleging bodily injury, property damage, and libel and slander. In addition, a BOP usually includes business interruption insurance, which helps pay for lost income after a covered loss.

Insurance providers may determine whether a business qualifies for a BOP based on its location, size, type of industry, and revenue. Nevertheless, it’s important for businesses to carefully review the terms of a BOP before acquiring it. Furthermore, a BOP should not be seen as a one-stop business insurance solution; it’s still necessary to obtain other policies such as workers’ compensation and commercial auto insurance.



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