The Basics of Business Insurance for Small Business Owners

Risk comes with the territory when you run a small business. Negative cash flow, personnel issues, accidents on your premises, fire or flood — these are just a few of the risks that can disrupt the stability of your business. One lawsuit or catastrophic event can be enough to set your business back and may even force you to close your doors.

You may not be able to protect against all the risks your business faces, but you can manage some of them with business insurance. This is what a business owner’s policy, or BOP, is designed to help you do.

Business Owner’s Policy: Designed for Small Business Owners

A BOP is a policy designed specifically for the needs and budget of small business owners, and the risks they commonly face. BOPs bundle two types of protection in a single policy — commercial property and general liability insurance — which allows providers to sell them for less than two policies sold separately.

BOPs are also customizable. You can add on coverages to tailor a policy to the specialized needs of your business or industry.

A BOP may be right for you if your business has fewer than 100 employees, meets certain maximum income requirements and is a low-risk operation. Businesses that are larger, highly specialized or have high-risk operations may need more coverage than a BOP can provide.

Here’s a closer look at the coverages that are included with a BOP.

Property Insurance

The property portion of a BOP covers damage to your business caused by fire, explosion, windstorms, theft, vandalism and any other perils specifically listed in the policy. The types of property that are covered by a BOP include: Read Full Articlehttps://sba.thehartford.com/managing-risk/the-basics-of-business-insurance-for-small-business-owners/