Insurance is an essential part of owning your own business, and it can be really difficult to know which insurance policy is best for you. When you have a small to mid-size company, it can be easy to assume you don’t need to same kinds of insurance as larger corporations, but this often isn’t the case. You need to make sure that you and your company are fully protected. Here are the insurance policies you may need to consider for your small business…
BOP – Business owner’s policy
Business owner policy package has all required coverage a business owner would need. Often, BOP’s will include business interruption insurance, contractors Insurance, property insurance, vehicle coverage, liability insurance, and crime insurance . Based on your company’s specific needs, you can alter what is included in a BOP.
Typically speaking, you can save money by choosing a BOP because the bundle of services often costs less than the total cost of all the individual coverage’s.
General Liability Insurance
Every business, even if it is small and home-based, needs to have liability insurance. This policy provides both defense and damages if you, your employees or your products or services cause or are alleged to have caused Bodily Injury or Property Damage to a third party.
Professional Liability Insurance
This type of insurance is also known as ‘Errors and Omissions Insurance’. The policy provides defense and damages for failure to or improperly rendering professional services. Your general liability policy does not provide this protection, so it is important to understand the difference. Professional liability insurance is applicable for any professional firm including lawyers, accountants, consultants, notaries, real estate agents, insurance agents, hair salons and technology providers to name a few..
If you own your building or have business personal property, including office equipment, computers, inventory or tools you should consider purchasing a policy that will protect you if you have a fire, vandalism, theft, smoke damage etc. You may also want to consider business interruption/loss of earning insurance as part of the policy to protect your earnings if the business is unable to operate.
Life insurance protects you against death, which may sound odd. If you have life insurance, the insurer pays a certain amount of money to a beneficiary upon your death. You pay a premium in exchange for the payment of benefits to the beneficiary. This type of insurance is very important for business owners in particular because it allows for peace of mind. Having life insurance allows you to know that your loved ones will not be burdened financially upon your death.
Data Breach Insurance
If your business stores any kind of sensitive or non-public information about employees or clients on their computers, servers or in paper files they are responsible for protecting that information. If a breach occurs either electronically or from a paper file a Data Breach policy will provide protection against the loss.