As a new business owner, all the decisions involved in setting up and running your company can be overwhelming. However, one very big matter that deserves your full attention is insurance. What kind of policy does your business need, and what will it cover?
What Is A Business Owners Policy?
A Business Owners Policy, or BOP, is a type of enhanced insurance policy that combines general liability insurance with property insurance. General liability insurance may help with your customers’ losses, but it does not protect your own property. That is why a BOP is a good idea.
If you own an office building or you use tools or equipment to carry out your work, a BOP will provide the protection you need for your business. The cost will depend on your industry, your location, the size of your company, and the amount of coverage.
What Does A Business Owners Policy Cover?
Under the general liability insurance category, your BOP will cover you in the event that another person or business claims bodily injury, property damage and medical costs. It will also cover your business’s equipment and furniture from damage, including accidental damage.
What Does A Business Owners Policy Not Cover?
A business owners policy will not cover certain claims that may arise from the professional services you carry out at your business. It also won’t cover damages to clients caused by any improper advice you give in the course of your business. In these cases, professional liability insurance may be helpful.
Additional Policies To Consider
Since a business owners insurance policy only includes general liability and property coverage, below are a few additional policies small business owners should consider acquiring.
Professional Liability Insurance
Professional Liability Insurance, or Errors and Omissions Insurance, can protect your company if someone sues you for carrying out your services negligently, even if you did not make a mistake.
Customers can sue you for either doing something you should not have done or not doing something you should have while providing them with your professional services. This type of insurance can cover the cost of defending yourself in court and any related settlements.
Cyber Security Insurance
Computer-related crimes and losses are a very real consideration these days, and Cyber Security Insurance can protect your business from targeted attacks such as malware as well as misplaced computer equipment that contains confidential material.
Keep in mind that you might be liable for the cost of notifying affected parties should your business’s computer system be compromised by an attack, and you might also have to offer credit monitoring. Cyber insurance policies will typically cover data, privacy and network exposures.
Non-Owned Auto Liability Insurance
Non-Owned Auto Liability Insurance will offer protection if your employees sometimes drive their own car or a rented one for business. When your employee is operating their own vehicle while doing work for you and gets into an accident, your business might be liable, and this type of policy can cover third-party property damage and bodily injury from accidents as well as defense costs in a lawsuit.
Speak to Experienced Specialty Insurance Brokers
Getting the right insurance to suit your small business’s needs can keep your business afloat in the case of an accident or other incident. Reach out to the experienced specialty insurance brokers at Merchant Family Agency to ensure you have covered all the bases. Please give us a call at 407.707.6418 or request a quote online today.