If you own a business, you know that your company is vulnerable to certain risks, regardless of its size or the industry it belongs to. Fortunately, comprehensive insurance policies exist today to protect businesses from a variety of incidents, some of which may be completely unanticipated. One such package that combines multiple types of insurance coverage is a Business Owners Policy (BOP). Small and mid-sized businesses may benefit most from this type of insurance policy, especially as the COVID-19 pandemic continues to ravage the United States. Don’t like this last part as most carriers are adding “Covid Exclusions” we simply cannot say this last sentence
What Does A Business Owners Policy Cover?
Most basic BOP’s include four essential coverages: commercial property insurance, general liability insurance, business income and crime insurance. Here is a close look at each of these four types of coverages.
Commercial Property Insurance
As its name indicates, this form of coverage is designed to protect your company’s physical property. This includes the building where your company is located, as well as your business’s inventory and equipment such as laptops, printers and other business-specific tools and machinery. Commercial property insurance policies can either be standard or special. The latter type offers more comprehensive coverage. Although many such policies cover loss of business property due to theft, commercial property insurance rarely covers items damaged in events such as floods. Therefore, it’s always important to know exactly what your policy covers.
General Liability Insurance
General liability insurance helps cover any property/bodily injury damages or medical expenses for which you and your employees bear legal responsibility. These types of claims often arise from defective products, errors in services provided or incorrect installations. Depending on factors such as the severity of the injuries sustained or the type and amount of property that becomes damaged, general liability claims can potentially be extremely costly. A 2015 study performed by financial services company The Hartford revealed that “customer injury or damage” was the fifth-most-expensive insurance claim, totaling $30,000 on average.
This type of coverage helps you pay basic expenses (including employee wages, utilities, rent and mortgage) if your company is forced to temporarily close due to an unprecedented disaster like a fire, flood, etc. This type of protection, also known as business interruption insurance, may also cover the added cost of conducting business out of a provisional location. According to web technology company web.com, 40% of businesses are unable to reopen after a catastrophe due to miscalculated — or a lack of — business interruption insurance.
Crime insurance helps shield your business from incidents of theft, fraud, and forgery. If your company handles sensitive information such as addresses, phone numbers and credit card information, it is especially important to have this type of protection. Crime insurance may also be highly beneficial if your business manages other people’s financial assets. According to the Association of Certified Fraud Examiners (ACFE), companies in the U.S. are responsible for over $400 billion each year due to fraud and abuse alone. Studies also show that small businesses are especially vulnerable to crimes such as theft and fraud.
Who Should Acquire A BOP?
Nearly any small or mid-sized company can benefit from purchasing a business owner’s insurance policy. However, you may particularly benefit from this type of coverage if your company is located outside your home, if you have equipment you wish to protect and if your annual sales volume is less than $5 million in yearly sales.
It is also important to note that certain coverages such as employee benefits, workers’ compensation and business auto are not generally included in a BOP.
Speak To An Experienced Business Insurance Agency
Reach out to the professionals at Southern States Insurance in Alpharetta, Georgia for more information on Business Owner Policies and their benefits. Since our founding in 1992, we have grown to become one of the largest privately-held independent insurance agencies in the Southeastern U.S. We work with nearly every major insurance carrier and are dedicated to helping our clients obtain high-value insurance solutions. At SSI, we place a large emphasis on forming deep, long-lasting relationships with our clients.
If you are a new business owner, it is imperative that you acquire insurance as quickly as possible so that you are adequately protected when unexpected events occur. BOP liability coverage includes both bodily injuries and property damage, as well as income loss and other business-related claims. The exact cost of a BOP typically varies depending on the type of business you own or the state where your company is located, among other factors. If you have a long history of insurance claims, your premiums may be especially high.
Call Southern States Insurance today at (888) 971-6304 or contact us online to request a quote.