Business Owners Policy

We offer policies that combine protection from all major property and liability risks into one package called a BOP, or business owners policy. This package is usually purchased by small and mid-sized businesses.

BUSINESS OWNER POLICIES (BOP) COVERAGE INCLUDES:

• Property Insurance covers buildings and their contents owned by the company – there are two different forms available – standard and special.

• Business Interruption Insurance covers the loss of income resulting from a fire or other catastrophe that actually disrupts business operations. This policy can also cover the extra expenses associated with operating out of a temporary location.

• Liability Protection covers a company’s legal responsibility for the harm it may cause to others. This harm could result from you or your employees doing or failing to do something in your business operations that may cause bodily injury or property damage (i.e., defective products, faulty installations, or errors in services provided).

BOPS DO NOT COVER

Professional liability insurance, auto insurance, worker’s compensation or health and disability insurance.

You will need separate insurance policies to cover your professional services, vehicles and your employees.

INSURING A HOME-BASED BUSINESS

Launching and running a business takes capital, motivation and yes, even physical stamina to handle the stress and demands of a new or growing venture.

With any new venture comes increased risk. In fact, statistics say that one out of every five businesses fails within the first five years of opening its doors.

Handling inventory, scheduling time, purchasing supplies, handling payroll — of course there are a myriad of tasks a small business entrepreneur must accomplish, but one of the most critical and often neglected is buying proper insurance coverage.

We can help ensure your small business is safe and secure from the daily risks it will face.

TAKE INVENTORY OF YOUR BUSINESS

What would happen if a fire or other disaster destroyed your property, making it impossible for you to get back to business right away? Would you be able to recall the specific items that were destroyed?

It’s smart for business owners to do a complete inventory of their property. It’s much easier to determine the value of each item and decide if it’s worth insuring.

Keeping an inventory will help you get your insurance claims settled faster, verify losses for your business’s tax return and help you purchase the correct amount of insurance coverage.

Start by making a list of your business property, describing each item, noting its make, model and where you bought it. Clip any sales receipts, purchase contracts, and appraisals to your inventory list and keep it all in a safe place.

THE RIGHT COVERAGE

The type of insurance coverage you need depends on a number of factors including what kind of business you operate.

Aside from personal business property, there is liability insurance, business income, insurance for the building, boiler and machinery, human failure, employee protection and management protection, among others.

BUSINESS OWNER’S INSURANCE CHECKLIST

Click here to download the “Business Owners Insurance Checklist”

HOW TO KEEP COSTS DOWN

Industry trade organizations and certain local business associations often provide reduced insurance rates. Finding a policy through one of these groups could save you significant time in determining what you should cover.

They typically negotiate to get coverage that’s unique to your type of business – so the policy would offer the exact protection you’d need.

Make sure that you are working with a reputable firm and an agent that takes the time to understand your business.

With Permission © Insurance Information Institute, Inc.

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