Protect your business and your livelihood by being prepared should disaster strike. There are several types of commercial insurance policies, some of which can be bundled into a Business Owner’s Policy (BOP). Get to know these types of insurance and which will work best for your needs.
Business owner’s policies, or BOPs, are designed to simplify risk management by combining liability risks into a single package. Small and mid-size businesses are eligible to purchase BOPs. These typically include:
This type of insurance covers loss of income owing to an interruption in day-to-day business operations due to unforeseen circumstances or catastrophe. These circumstances can include fire or weather-related damages. Depending on the policy, business interruption insurance may also cover the cost of moving to and working from a new location while damages are being repaired.
This protects a business from assuming full financial responsibility for harm to third parties while they are on its property. Types of harm under liability coverage include bodily harm, personal injury, and reported property damage caused by the business owner or employees a business. Typically, liability insurance compensates the business owner for any legal fees or court costs incurred during third party lawsuits.
This type of insurance provides coverage for all buildings a company owns, as well as coverage for the contents of those buildings. Standard property insurance provides coverage for so-called “named” risks, meaning covered services are spelled out in the policy (fire, vandalism, water damage, etc.). Special property insurance is more comprehensive, and it is sometimes referred to as “all-risk” coverage.
BOPs, however, do not include coverage for commercial auto insurance, workers’ compensation insurance, professional liability insurance, or employee health and disability insurance. In these situations, separate policies are required to cover a business’s employees and vehicles.
Under general liability coverage, you are also protected from claims of slander, libel, copyright infringement, and false advertising. Lastly, liability coverage protects you from any damage to rented property. If you rent property for your business, liability coverage is vital protection.
Unfortunately, liability insurance is necessary because we live in an exceptionally litigious society. Regardless of your industry and its hazards, if someone gets hurt on your property, they are likely to sue. Liability insurance offers a lot of value for its price. Annual premiums range in price from $750-$2000, depending on your needs. That’s a small price to pay for insurance that can save you potential millions in the event of an accident.
Many businesses carry property insurance, but for industries that require expensive equipment, it is essential protection. Property insurance costs vary widely because they are proportional to the value of your property. A manufacturing plant with several million dollars’ worth of equipment will pay much more for property insurance than a small boutique clothing store. Either way, property insurance is an important part of your commercial insurance plan. Property insurance is often purchased as part of a Business Owners Policy (BOP) and combined with liability insurance and other coverage.
Unlike other forms of insurance, worker’s comp insurance cannot be bundled into your Business Owners Policy (BOP); therefore, it must be purchased separately. Worker’s comp insurance can be purchased through a private insurer or through the state fund.
At Austin Business Insurance, we work to help you find the best coverage for your business. We want to protect your business and family just as much as you do! Navigating the concepts and paperwork of commercial insurance policies can be confusing: that’s why we’re here.
We are committed to helping our clients understand their needs and make policy purchases as easy as possible. Our hope is to establish a long-term relationship with you and grow with your business. If you’re interested in learning more about commercial insurance, contact Austin Business Insurance today.