What is business owners insurance?

Often referred to as a BOP, a business owners policy can combine various insurance coverages into one policy. It will include commercial property insurance which helps the insured protect their building, personal property, equipment and inventory. It will also include commercial general liability insurance which will help cover bodily or property damage you or your employees are help legally responsible for. It will include business income coverage which will help you pay your bills and employees if you are temporarily shut down from a covered cause of loss. Other coverages that are included in a business owners policy are crime, accounts receivable, equipment breakdown along with many others.

Why do you need business owners insurance?

Many small businesses can benefit from purchasing business owners insurance. The business owners’ policy covers many risk exposures that small businesses face today. It is often cheaper than trying to get separate policies for each line of businesses needed as you can bundle them all under one policy. Usually businesses with than than $5,000,000 in annual sales and fewer than 50 employees can quality for a business owners policy. There are some businesses with high risk exposures or highly specialized work that would not quality for a business owners policy due to their operations.

Types of businesses that can benefit

Businesses that fall into the following categories (plus quite a few more) are prime examples of an operation that would benefit from purchasing business owners insurance: hair salons, insurance agencies, law offices, dental offices, medical office, auto service repair, small contractors, machine shops, retailers and light manufacturers.