Contrary to popular belief, small businesses face a lot of the same risks as large businesses. Small businesses may even be a larger risk for an accident or claim causing lasting damage, as they may not have the financial cushion of a large business.
A business owners policy (BOP) is designed specifically with small businesses in mind. This policy combines important business insurance into a single, flexible and affordable policy for small businesses in low-risk industries.
What Qualifies for a BOP?
The category of “small business” generally varied depending on your industry. For example, even a business with 1,500 employees can be considered a small business. However, only low risk industries may qualify for a BOP.
A low risk industry is an industry that is less at risk for needing to file a claim on a business insurance policy. Industries that are considered low risk may include:
- Virtual assisting
- Senior care
Be sure to ask your insurance agent about the proper insurance policy suited for you business’ many facets and assets.
What Does a Business Owners Policy Cover?
A basic BOP comes with two insurance coverages:
- General Liability Insurance: General liability insurance covers accusations against your business concerning bodily injury, property damage and personal or advertising injury. If someone is injured on your business’ property, for example, general liability insurance covers the medical bills of the victim.
- Commercial Property Insurance: Commercial property insurance covers the physical location of your business and its contents in case of damage or loss caused by fire, wind, hail, lightning, smoke, theft, vandalism and more.
These policies are flexible and allow you to add coverages and expand limits as needed to protect different aspects of your business. Common additions you may add to a business owners policy include:
- Umbrella Liability: Umbrella liability insurance fills in the gaps left by your other liability policies. If a claim reaches its limit for your general liability policy, for example, umbrella liability insurance can step in to cover the remaining balance.
- Product Liability: Product liability covers claims of bodily injury and property damage filed against your business concerning products manufactured or sold.
- Liquor Liability: Liquor liability insurance covers bodily injury or property damage a patron may cause after purchasing or consuming alcohol at your business.
- Commercial Auto Insurance: Commercial auto insurance covers vehicles owned or used by the business in case of an accident.
- Workers Compensation: Workers compensation covers expenses related to an employee workplace accident.
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