How Insurance Works: Business Owner's Policy For Small Businesses

Insurance companies often bundle up several insurance policies into a single package that's then offered as a single contract. For small and medium-sized businesses, the most popular is the Business Owners Policy (BOP).
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This coverage combines coverage for virtually all significant you must evaluate insurance risks, with a few extra add-ons. 

What is BOP?
The BOP incorporates business income insurance, also known as business interruption insurance. This policy compensates the business owner if the company cannot run after a disaster and so loses income. The coverage also covers any additional expenses incurred from renting out a temporary location if the company is forced off its property.

This business income insurance counts for online businesses if they're hacked, or there's a virus, and they're forced to shut down. 

What is Covered by BOP?
BOP only covers small to medium-sized businesses, and these are expected to meet specific criteria first. Some of the significant coverages offered include:
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1. Property Insurance
   This compensates for damage to any property used by the business due to things like fire or burglaries. Property insurance covers both the building and the personal assets or property, from office furnishings and inventory to machines and computers. 
   
   
2. Liability Insurance
   Your business could find itself with a legal suit from disgruntled clients or customers injured by one of your products. When this happens, liability insurance covers damages your business is found liable for, including the lawyer fees and any medical costs.
   
   
3. Business Auto Insurance
   The business auto policy protects vehicles owned by the business. The policy pays off third parties injury costs sustained at work.
   
   
4. Workers Compensation Insurance
   Most states require employers to possess workers' compensation insurance for a specific number of workers (usually three to five). This covers medical assistance and replaces a fraction of lost income for an injured employee.
   
   
5. Umbrella/Extra Policies
   These are policies that are purchased as additional coverage plans by businesses. For example, in businesses whose primary purpose and service are advice-giving, making recommendations, creating designs, physical care, or representing others, there may be complications and service delivery errors. 
   
   Customers may sue the business if they feel that the company failed to perform its job. Some of the additional policies include:
   
      - Errors and Omissions Insurance/Professional Liability
      - Employment Practices Liability Insurance
      - Directors and Officers Liability Insurance
      - Key Employee Insurance
      - Umbrella Policies

Conclusion
As a small business owner, it's essential that you evaluate the kind terms of a business owner's policy to ensure that all your needs are met. Remember that disaster could strike at any moment, so it's of utmost importance that you sufficiently protect your business.

At CSIS Insurance Services, Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (888) 501-2747 or Click Here to request a free quote.