Business Owner’s Policy (BOP)
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Business Owner's Policy (BOP) is a great option to bundle with your commercial property insurance because it combines three essential types of liability coverage: commercial property insurance, general liability insurance and business income insurance. BOP insurance protects businesses from claims such as fire, theft, bodily injury or business property damage. The business owner’s policy also can protect your business against claims that are related to your business operations. A BOP is fully customizable with optional coverages that can be added on for even more protection.
Business Interruption Insurance
Business interruption insurance, sometimes called business income insurance, can help replace lost income if you must close your business temporarily due to a covered loss, like property damage. For example, if a fire breaks out at your bakery business and you need to shut down to make repairs to your kitchen, this coverage can help cover the costs of your lost income while they restore your property. This type of insurance also helps cover a civil authority, like a government-mandated road closure that forces you to temporarily close your business.
Commercial Auto Insurance
Commercial auto insurance helps protect you and your employees while out on the road driving company-owned or rented vehicles for business purposes. It can also help protect your business if your employee drives their own vehicle for business errands. In most states, it’s required to have commercial auto insurance if your business owns, leases or rents any vehicles that are used for work. Be sure to check with your local laws to find out if you need this coverage.
When you’re thinking about what types of coverage you need for your business, you should ask yourself these questions:
1. What type of property do you own or lease?
This includes buildings, equipment, tools, furniture and other assets. The type of property you have will influence what coverages you need.
2. What potential risks do you face in your location?
Consider your physical location of your business and the risks you face, like floods, hurricanes, earthquakes or other natural disasters. This will help you determine if you need commercial flood insurance too.
3. How much is your property worth?
Assess the total value of your property to help determine what your coverage limits should be. This assessment should include buildings and other physical assets that your business uses for your day-to-day operations.
4. Do you have business interruption concerns?
Consider how much it would cost your business to be out of operation for a few days or a few weeks. Business interruption insurance can help cover your lost income and necessary operating expenses, like payroll, if you must temporarily close your business due to a covered loss.
5. Do you have valuable or specialized equipment?
If your business relies on specific machinery, computer systems or specialized equipment to get the job done, you should consider getting
equipment breakdown insurance. This coverage can help cover the costs to repair or replace important equipment if it’s damaged or destroyed because of an internal issue, like a power surge or part failure.
6. Do you own any company vehicles?
If your business uses any vehicles for business operations, you’ll likely need commercial auto insurance. In most states, it’s required to have commercial auto insurance coverage. It’s essential to financially protect your business from having to pay for costly repairs or liability claims from an accident that happens while you or your employee was driving for work reasons.
7. Have you reviewed your lease agreements or contractual requirements?
Some lease agreements or contracts may require you to have specific types of insurance coverage, like glass insurance. This is often due to the likelihood of incidents happening or the cost of repairing certain things. Be sure to review your business’ lease agreements and any contracts to make sure you are meeting your insurance requirements.
