Hard work and courage are necessary components of building a successful business, but in today’s litigious society, it requires more than grit alone to keep things running smoothly. That is why having the appropriate insurance policies can provide true peace of mind. Different forms of business insurance cover common property and liability risks. Discover more in The Ultimate Guide to Business Insurance Types.
1. General Liability
General liability coverage, also referred to as commercial general liability (CGL) or public liability insurance, is essential for small businesses. It protects them from risks such as bodily injury, property damage, medical expenses, and reputational harm such as libel or slander claims.
While business liability insurance isn’t legally mandated, certain clients and agencies may request it before agreeing to work with you. You have two options for coverage options: standalone policies can be purchased individually or combined into a business owner’s policy that also includes property coverage; additionally, you could add an umbrella policy as an add-on.
2. Commercial Auto
Products, coverages, discounts, and insurance terms may differ depending on your state. For full details regarding what coverages may be available to you in your state, please refer to your policy documents or declaration pages for your state.
Commercial auto policies provide your business with protection from liability associated with bodily injury and property damage caused by you or an employee driving their own or company vehicle for business purposes. Furthermore, these policies also offer physical damage coverage, such as collision, comprehensive, and specified peril coverage for vehicles owned, leased, or rented from your organization.
Hire and non-owned auto coverage could also be required if employees drive their own cars for your business, with higher liability and UIM limits than typical. These add-on policies usually offer better protection.
3. Business Owner’s Policy (BOP)
A Business Owners Policy (BOP) is an insurance bundle consisting of at least two essential business coverages designed for low-risk industries and small businesses, offering savings over purchasing multiple separate policies separately. General liability insurance protects your business against third-party claims of bodily injury or property damage to customers and can cover expenses associated with legal disputes and legal fees incurred as a result of them.
A BOP may also include commercial property insurance, which protects your building(s), equipment, inventory and more from risks like fire or theft. Many providers also allow you to customize your BOP with add-ons such as workers’ compensation and cyber liability policies.
4. Business Interruption
Business interruption (BI) insurance provides essential financial protection from disasters and other catastrophic events, providing reimbursement of pre-loss earnings less ongoing expenses as a reimbursement amount. Each BI policy typically has its own restoration period and coverage limits, so it’s crucial that you fully comprehend and adhere to these policies before purchasing one.
Business interruption (BI) insurance provides coverage against damage from fires, some natural disasters and severe weather conditions, theft or vandalism, riots or civil unrest, as well as certain other perils specified in your business interruption policy. Furthermore, this coverage extends to supply chain disruptions, which lead to a loss in income.
5. Business Owner’s Policy (BOP) Bundle
Establishing and operating a business comes with its share of risks. Natural disasters and legal claims can be financially catastrophic; fortunately, you can protect your enterprise with a commercial package policy known as BOP to shield it against these dangers. A bundle is an insurance package designed specifically to meet the needs of small businesses that combines general liability and commercial property coverage under one policy, typically at a lower cost than purchasing them separately.
Your Business Owner Policy (BOP) protects equipment, inventory, structures, and other belongings owned by your company from damage, as well as liability from incidents like customer injuries and claims of libel or slander. With its customizable policy endorsements and higher limit options, this insurance can meet all of the needs of your business.
6. Professional Liability
Businesses of all types face liability risks. Professional service firms, especially, are vulnerable to errors that cause customers financial harm. Professional liability, or errors and omissions (E&O), insurance policies are a popular form of protection among attorneys, physicians, and real estate agents.
E&O policies provide protection to professionals offering advice or services, such as notaries public, management consultants, technology service providers, and home inspectors. Professional liability policies usually operate according to claims-made basis and contain specific exclusions for certain incidents or circumstances.
7. Business Owner’s Policy (BOP) Bundle
Operating a business comes with its share of risks, but having a Business Owner Policy (BOP) in place can help protect against some of the most prevalent ones. A BOP typically bundles together general liability, commercial property, and business interruption insurance into one policy, which costs significantly less than purchasing them individually.
Businesses operating in higher-risk industries may require a more tailored insurance solution, such as a commercial package policy (CPP). With CPPs, coverage bundles can be customized specifically to your business needs—for example, adding data breach and liquor liability policies as needed.
8. Business Owner’s Policy (BOP) Bundle
A business owner’s policy (BOP) combines general liability and commercial property coverage into one cost-effective package, making it ideal for small companies with limited risk exposures. BOPs protect your business against claims from third-party bodily injuries, property damages, and advertising injuries, as well as providing income replacement should operations temporarily cease due to a covered loss.
Customize a business owner’s policy to fit your exact needs by adding industry-specific coverages like equipment breakdown, business interruption, and money and securities protection. Furthermore, limits can be tailored specifically for your needs.
9. Business Owner’s Policy (BOP) Bundle
A Business Owner’s Policy, or BOP, combines general liability and commercial property coverage into one cost-effective policy, often offering business interruption coverage as well as money and securities coverage as additional features. This package provides protection from common risks such as customer injuries, property theft, and accusations of libel or slander. This plan is particularly ideal for small businesses with limited risk exposures.
A BOP can be tailored to your unique needs by including add-on coverages and endorsements that meet those requirements, though its premium may differ based on factors like property value and claims history. Furthermore, it’s wise to take special consideration into cyber liability policies or workers’ compensation insurance when purchasing one.
