Business insurance, or commercial insurance, protects your business from financial loss due to property damage, lawsuits and more. It can also cover the costs of a temporary shutdown and lost business income. Many companies purchase multiple types of business insurance and often combine them into a single policy known as a business owner’s policy (BOP).
Learn more about the coverage options available to you and start protecting your company today.
Coverage Options
There are many types of business insurance, each designed to protect against a different risk. You may need several policies to cover everything from a lawsuit to a natural disaster. Many businesses are required by law to have certain types of coverage, such as workers’ compensation and commercial auto insurance.
For example, general liability insurance protects you from claims that result from customer injuries and property damage. It may also pay for the cost of cleanup and lost income. Commercial property insurance helps protect your business’ rented or owned buildings and tools and equipment from damage by fire, smoke, wind, hail, civil disobedience or vandalism.
You can often bundle these policies together into a business owners policy (BOP). Your broker-agent will review your business operations and the risks associated with them to help you select the right type of coverage. Discover more at Cost-Effective Outsourcing Insurance Solutions.
Evaluate Your Risks
Every business faces risks. Some risks are unavoidable, such as accidents or natural disasters that can impact operations and lead to costly damages. Others may be caused by internal or external events that are out of the company’s control, like regulatory changes or lawsuits.
Evaluating business risks and implementing risk management strategies are important for companies to mitigate threats. Insurance plays a valuable role in these efforts by promoting the proactive approach to risk management and encouraging businesses to prepare for the unexpected.
Identifying your unique risks helps you determine what policies your business needs. For example, if your business relies on third parties for payment and you offer credit terms, you may need trade credit insurance. Similarly, if your company’s leadership team makes poor decisions or breaches fiduciary duties, directors and officers insurance could help offset losses.
Get Quotes
If you’re looking to buy business insurance, start by getting quotes. To do this, you’ll provide basic information about your business, including its estimated annual revenues and the number of employees. You may also be asked for copies of past loss runs.
Many online insurance marketplaces, such as CoverWallet and Simply Business, work with insurers to help you get multiple quotes at once. This can save you time and hassle.
Most businesses need at least general liability insurance, commercial property insurance and workers’ compensation coverage. You can often purchase these policies as a bundle called a business owner’s policy (BOP). It’s a good idea to review your quote and policy regularly, especially if you have acquired or sold assets, added new employees or changed your business operations.
Bundle Policies
No matter the size of a business, unforeseen events can cause financial loss. A natural disaster, cyberattack or even a single lawsuit could wipe out a company. Fortunately, a good insurance policy can help businesses manage losses and recover from a variety of situations.
Bundling insurance policies is a great way to save money while simplifying management of your coverages. You can bundle auto insurance with home or renters insurance, for instance. You may also be able to bundle business insurance with commercial property or workers’ compensation insurance.
A popular option is the business owner’s policy (BOP), which combines typical liability and property insurance coverage into one package. It’s a convenient option for many small businesses. You can find a BOP through your business’s agent or online.
Review Your Coverage
You can lower your business insurance rates and protect your assets with a proper policy. Understand the risks that come with your industry and location, then work with a licensed broker-agent to get the right coverages for your unique business.
Then, make sure your policies are updated as your business grows. For example, if you buy new equipment, add employees or revise your services, it could impact your coverage needs. In addition, floods and earthquakes may not be covered by standard property insurance policies, but separate commercial insurance policies can address these issues. Moreover, you should know whether your business is required to carry workers’ compensation, general liability or other state-specific insurance. Your broker-agent can help you determine if you are in compliance.