Having adequate business insurance can ensure that you don't suffer a financial loss when any of the covered hazards or incidences occur. It can protect you from liability and damages, including lawsuit costs and third-party property damages. Standard commercial policies may also cover events like natural disasters and accidents.
Typically, you can protect your small business against common risks with a business owner policy (BOP). BOP is a form of insurance for a business that bundles together multiple individual coverages. The coverage included in a BOP depends on various factors. Read on to understand how BOP protects you and to help you decide whether to consider expanding your small business insurance coverage.
What Coverages Does BOP Include?
Most business insurers offer standard coverage options under BOP. As such, you may need to get additional separate policies or endorsements to maximize protection, depending on the size and type of your business.
The basic GOP coverages are:
General Liability
This policy covers third-party bodily injury and property damage for which your business may be liable. It covers injuries that your business operations or faulty aspects of your premises may cause to a customer or guest. It doesn't cover all liabilities that you face, and you might need to carry umbrella insurance to close any coverage gaps.
Property Damage
This policy can cover the replacement of your business assets if lost or destroyed in an event such as fire, theft, or vandalism. To maximize your protection, be sure to include your physical premises and all their contents in this coverage.
Business Interruption
This policy can provide the funds you need to keep your business afloat as you rebuild after a covered event has occurred, such as fire damage. It can take care of lost income and cover expenses such as utilities and staff salaries. It usually provides funds for use while your business is closed for repair or reconstruction.
Amount of BOP Coverage Required
Get a BOP coverage that gives you maximum liability and loss protection. A standard BOP plan may be enough for a sole proprietor, but a larger enterprise may need higher limits or BOP add-ons.
Your business insurance needs will typically depend on factors such as:
— Your specific operations and industry
— Type of service or products offered
— Your specific customers or clients
— The number of employees you have
— The overall experience of your staff
— Size of your business
— Your business location
What if Your BOP isn't Enough?
If a standard BOP doesn't adequately cover the risks you face, you may consider these additional coverages.
— Worker's compensation (which is mandatory in most states if you have a certain number of employees)
— Professional liability (if you can be sued for issues like bad advice or negligence, such as in the healthcare industry)
— Cyber insurance
— Credit insurance
— Key person insurance
— Inland marine
Having adequate business insurance coverage protects you against a wide range of risks. If you'd like help getting a comprehensive policy from the leading business insurers, get in touch with the experts at
CF&P Insurance Brokers today at (925) 956-7700. We can survey your business for risks and recommend the insurance policies necessary to fully protect your enterprise.
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