Most Important Components Of Your Business Owners Policy

Most Important Components Of Your Business Owners Policy
For those wishing to secure the fullest possible protection for their business against all possible liabilities, a business owners policy (BOP) is the answer. BOPs are full orbed insurance packages that combine legally required insurance types, essential coverage like that provided in general liability insurance, and other more optional or industry-focused types of cover.
Every BOP needs to be customized to fit the needs, risk level, and budget constraints of each business owner. But if you’re interested in forming a BOP to protect your business, here are the most important features to include:

1. Workers Compensation
No one can afford to risk a costly personal injury lawsuit based on on-the-job accidental injuries, along with punitive actions by the state government, because he/she neglected to purchase the requisite workers comp coverage. Why not roll workers comp into a BOP package to get the best possible deal on it as well as to stay legal?

2. Commercial Auto
Personal auto insurance is often illegal and/or inadequate for covering a business vehicle, and in that case, you need a commercial auto policy. This will cover vehicle types not eligible under personal auto rules and cover you whenever an employee is driving a vehicle owned/rented by your business for a business-related purpose.

3. Commercial General Liability
If you were going to pick just one kind of business insurance aside from required types like workers comp and commercial auto, it would be commercial general liability.

General liability will cover you where workers comp does not, that is, when a third party (non-employee) is injured or when you accidentally damage a customer’s property. General liability usually also includes coverage against reputational harm, advertising errors, damage to rental property, and more.

4. Professional Liability
Professional liability insurance covers things left out by general liability and is especially important for those who provide professional services, such as doctors and lawyers. This kind of coverage is also sometimes called Errors and Omissions Insurance (E&O).

Accidental mistakes or oversights, even if merely alleged, can become the basis of costly lawsuits. Whether it’s a matter of giving poor/incomplete advice to a client or forgetting to file important paperwork, anyone can make a mistake – professional liability prevents that mistake from destroying your practice.

5. Property Insurance
Some kind of property protection is essential to most business types. This might be coverage to protect commercial buildings against fire or storm damage and be parallel to homeowners insurance.

But it may also include cover for boilers and heavy machinery, computers and office equipment, the glass of a retailer’s storefront windows, or inadvertent damage your employees might do to property being rented by your business.

6. Business-specific Policies
Your BOP will also likely include some “industry-specific” coverage as well.

For example, physicians will want to include malpractice insurance, contractors may want builder’s risk insurance to cover property while it’s under construction, anyone doing business overseas should consider adding international operations insurance, and a tax assistance business might want to purchase valuable papers insurance.

If you’re not going to invest in a complete BOP, then the best route is to still get at least general liability insurance and, of course, workers comp. But if you want fuller coverage, you can save a lot by combining all desired policy types into one grand “umbrella” policy.

To learn more about different commercial insurance types, or for a free quote, contact Flagler County (FL) Insurance Agency today!