If you are operating a business, it is often necessary to invest in insurance policies that will help you protect your assets and operations. The type of insurance you need will vary based on the nature of your business. This is what you need to know if you are planning to buy a business insurance policy.
There are a number of different policy options for businesses and companies. Each one offers a selection of benefits that can be beneficial depending on your needs. They are as follows:
Business owner’s policy (BOP)
Business owner’s policies are often the starting point for many businesses, as they provide a good base of protection from common issues. At its base, a business owner’s policy offers general liability insurance, commercial property insurance, and business income insurance. Here is a breakdown of what each component of the policy offers the insured party:
- General liability insurance – This component of your BOP will help you pay for any liabilities faced by your company. Examples of potential liabilities include accidents that occur on your business premises that result in bodily injury and damage to a person’s property caused by your business operations.
- Commercial property insurance – This piece of your BOP will cover instances where your business’ property is damaged and needs to be repaired or replaced. Whether you lease or own your property, your insurance policy will help you keep your facilities equipped and furnished.
- Business income insurance – If your business is not able to operate due to insured damages, this aspect of your BOP will replace lost income. This is helpful, as it allows you to continue paying staff when a shutdown is necessary.
Commercial auto insurance
If your company owns vehicles that are used in business operations, a commercial auto insurance policy can protect them. Commercial auto policies are available in a great variety and you can customize them based on your business needs. The most basic coverage option is liability insurance, which covers damage to other people’s property if you or one of your employees is involved in an auto accident.
You can also find collision policies that cover physical damage to your vehicle caused by accidents or comprehensive policies that cover damage caused by other events, such as storms or fire. There are also a number of additional coverages you can add to your commercial auto insurance policy, including:
- Medical payments
- Uninsured/underinsured motorist
- Loss of use coverage
- Temporary car substitution
- Labor reimbursement
- Personal injury protection
Workers compensation insurance
Workers compensation insurance provides coverage to your employees, compensating them for injuries that occur at work. The policy will replace their wage and help pay medical costs if the employee is believed to have suffered an injury on the job. When the employee opts into receiving these benefits, they no longer have the option to sue their employer. This type of insurance can protect organizations from stressful and expensive legal complications. All states in the U.S. require companies that employ W2 employees to hold workers compensation insurance.
Professional liability insurance
If your company performs a service improperly and it results in damages for a client or customer, the business may be liable for those damages. Professional liability insurance, also referred to as errors and omissions insurance, will protect you from those liabilities. Businesses that benefit most from this type of policy include law firms, accounting firms, consultants, hair salons.
Choosing the right business insurance
Picking the wrong business insurance policy can cost you significantly in the long run. Don’t put your business at risk, speak with Acropolis Insurance now to get help finding a policy that fits your company.