Business insurance (also referred to as commercial insurance) protects companies against financial losses caused by accidents or unforeseen events, from legal costs to lost income.
Different policies can be tailored to address the risks unique to every business, with property, general liability, and product liability coverages among the more popular options.
Business Owner’s Policy (BOP)
BOPs (Business Owner’s Policies) combine multiple business coverages into a single comprehensive policy designed to protect small and midsized businesses. BOPs typically save both time and money when purchasing and managing multiple policies individually; typically these policies cover property, general liability and business interruption coverage with optional add-ons such as commercial auto or workers’ compensation coverage as add-ons or include them under another type of commercial policy.
Property coverage provided by a BOP provides protection for both your buildings and office spaces, as well as any equipment or inventory located therein. It helps pay to repair or replace such items damaged due to theft, fire or extreme weather events – or cover loss of income if your business must close due to such disaster.
General liability coverage is an essential element of a comprehensive BOP. This coverage extends to third-party injuries or property damage on company premises, and any legal costs related to any lawsuit related to these incidents. General liability policies provide coverage for events like slip-and-fall incidents, property damage claims and product liability claims.
Business owners must consider their specific needs and risks prior to purchasing a BOP policy. For example, software businesses that do not use commercial vehicles and do not experience work-related injuries might not require workers’ compensation or commercial auto policies. Working with an experienced agent will allow you to assess these risks accurately and determine whether a BOP suits your company needs.
General Liability
General liability (also referred to as commercial general liability, CGL or GLI insurance) provides your business with essential protection against claims of bodily injury or property damage that occur on its premises or as the result of operations conducted there. CGL policies cover property-related and medical expenses, legal expenses, settlement bonds or judgments and more – it’s an essential piece of business insurance!
CGL also typically includes business interruption coverage, which covers lost income and expenses in the event that property damage necessitates temporary closure due to an insured incident. Unfortunately, however, CGL doesn’t extend coverage for commercially owned items like vehicles – for this, consider getting business personal property coverage as part of a BOP package instead.
As a business owner, you understand how essential it is to protect your assets from unexpected events that could endanger the financial security of your company. A lawsuit, large or small, can devastate finances and reputation alike – without adequate coverage from business insurance policies you could find yourself left unable to pay the judgement. Furthermore, some clients and agencies require companies have commercial insurance before engaging with them; our team can assist in finding coverages tailored specifically to meet these requirements – reach out today so we can help get this process underway!
Product Liability
Product liability coverage is an essential aspect of doing business that manufactures or sells products. It protects you against legal costs, settlements and medical damages should a customer be injured by a defect in one of your products.
No matter if your company operates online or brick and mortar retail outlets, product liability insurance should always be an essential component. A product liability claim typically involves all parties involved with its distribution – this could include your company, distributors, suppliers and anyone who touched it along the way – being sued by lawyers representing those suing them and all involved suing each other in turn. Should someone find you at fault in relation to a product-related claim, having this type of policy in place could cover recalling and replacing of said products as well as any associated costs incurred as a result of recall and replacement in this event.
Beyond the financial aspects, this coverage can also benefit your company’s reputation. Customers will trust your company more if it can quickly recall and replace damaged or dangerous products quickly and efficiently.
As with our other policies, the premium costs for product liability coverage vary based on your industry and type of business. For instance, medical device manufacturers might incur higher premium costs compared to apparel producers due to an increased chance that one of their products may cause injury or death.
Business Interruption
Business interruption insurance provides financial compensation for revenue lost as a result of being forced to close due to an insured incident, while also covering additional expenses such as leasing equipment, paying overtime wages or hiring temporary staff during this time of inactivity. Furthermore, this coverage can extend to include civil authority ingress/egress coverage which reimburses you for losses associated with government mandated closures, such as curfews or road closings that relate back to an event that activates your business interruption policy.
Fires, aviation collisions and storms are some of the most frequent events that cause business interruptions; however, not all types of incidents will be covered under such policies. If you want specific events covered under your policy, speak to your agent and discuss available coverage.
Business interruption insurance provides more than just revenue coverage: it also reimburses for continuing operating expenses such as mortgage or rent payments, utilities payments, taxes and payroll; relocation expenses may even be covered if necessary. Small business owners in particular find this form of protection especially valuable as it allows them to keep operating when otherwise they would have had to fold. To activate this coverage however, complete access must be lost in order for it to kick in and make a difference for them and their staff members alike.
