Business owner's policies (BOPs) can provide critical insurance in one package. Nevertheless, they usually have exclusions because of the nature of protection they offer. In other words, BOPs are not designed to cover everything. It's important to know what your policy won't cover. It will help guide your future decisions about buying coverage.
Proprietors usually must augment their initial BOPs with further coverage. Therefore, by getting extra protection, you'll make your business much more secure. Yet, you need to have a starting point for your BOP. Take some time to figure out where it is for you.
Standard BOP Coverage
BOPs generally come with several standard coverage elements. These include:
- Property Coverage to insure possessions and structures belonging to the business. If a fire breaks out, this coverage might help pay for repairs and cleanup.
- General Liability Insurance to cover damage you cause to third parties. Think of it as the coverage that will protect you if someone slips, falls and sues the business.
- Business Interruption Protection that can help if you must close your doors to rebuild your operation. This coverage can help you pay the bills while the business is closes. And this will allow you to reopen in the clear.
Still, this isn’t the only coverage you will likely need. Your business might include diverse assets, which will need specialty insurance coverage.
Additional Insurance Policies
When you get a BOP, ask your agent how to add coverage for assets that might not have protection in the package. Other policies you might need include:
- Health Benefits: Employees can use this coverage to get affordable medical care. Coverage might even help them get better faster, reducing strain on the company. In some cases, you might have to offer this coverage, by law.
- Workers Compensation Insurance: This coverage can help you supplement the income of those who cannot work because they got hurt at work. Most states require most businesses to offer this policy to their employees.
- Commercial Auto Insurance: Businesses that operate vehicles need to insure them. Commercial auto coverage protects the business' investment in the vehicle. Since states require car insurance anyway, it's not a good idea to add this protection.
- Personal Injury Liability Coverage: Allegations of slander, libel or similar harm might lead to action against the business. This coverage can help you reach settlements with the affected parties.
- Professional Liability Coverage: If you make a clerical mistake or give bad advice, clients may suffer. Also called Errors & Omissions protection, this coverage can help you compensate clients for their financial losses.
In some cases, you can add certain elements of this coverage to your BOP. However, in many situations, you'll need additional insurance policies. Your Kasky Insurance agent can help you through this process. They'll make sure you walk away with adequate business protection.
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