Business owner insurance provides a wide variety of coverage options and is a smart way to protect your small business. It’s also a convenient option for people who want to bundle their business property and liability insurance into one policy at an affordable price.
Business owners policies can be a good fit for many types of businesses, including those with a physical location, such as a storefront or office. They offer broad coverage for a range of potential risks, and can be easily tailored to meet your unique needs through the addition of endorsements.
Liability protection is the most common type of coverage in a business owner’s policy. This protects your business against lawsuits for injuries to a third party or damage to their property caused by your products, services or operations.
BOPs can also help cover the costs of legal defense and settlements if you are sued over an incident involving your business. They can also pay for damages your business sustains as a result of natural disasters, accidents and fires, even when you’re not at fault.
A BOP also offers coverage for property that your business owns or uses, such as tools and equipment, furniture and inventory. It can also help to cover business interruption expenses if your business has to close for a period of time due to a covered event.
You can get a business owner’s policy by filling out a short questionnaire, which helps insurance providers determine your company’s risk profile. A quote can then be provided by an insurer, who may or may not ask you for more information about your business before determining the best policy for you.
The cost of a BOP depends on your state’s insurance laws, your company’s size and other factors, as well as the provider you choose to buy from. Some insurers offer discounts if you purchase two or more policies through them.
Professional liability (errors and omissions) coverage is an important piece of insurance for professionals, such as doctors or lawyers, who have to be held accountable for their negligence. It covers certain claims that arise out of your professional services, including client damage if you make a mistake in your work or provide inaccurate advice.
In fact, it is a requirement for many states to carry this type of coverage. Some providers also offer it as an add-on to a business owner’s policy, so it’s important to find out whether you need it before you buy one.
Commercial property insurance is a critical piece of a business owner’s policy, as it can help to replace the building and equipment your company owns or uses in the event that they are destroyed by fire, theft or another peril. This can be especially helpful if your company is located in a high-risk area.
This can include areas at high risk of earthquakes or floods, which are common occurrences in many parts of the country. You can also buy business owners policies that include a deductible, which means you’ll pay less for insurance if you have a claim than if you don’t.