A business owners policy offers liability, property and compensation coverage for small businesses. It covers three basic elements:
- Property Damage Coverage: This provides compensation for damages done to property owned by the business due to fire, hail, theft, vandalism and more.
- General Liability Insurance: This protects the business if a guest or third party is injured or has their property damaged due to general work practices.
- Business Interruption Insurance: This helps pay for lost income during the time a business is inoperable due to destruction or damage done to the business' property.
These coverages are a great start in insuring your business, but this isn't the only insurance you need for a BOP. You can add coverages to your policy in order to enhance your BOP coverage. Additional insurances include:
- Errors And Omissions Insurance: This coverage, also known as professional liability insurance, is a separate liability policy from general liability. This insurance protects the business in the event a mistake made by the business causes a client to lose money.
- Inland Marine Insurance: For companies that transport expensive equipment or items, inland marine insurance can provide compensation if those items are lost or damaged in transit.
- Cyber Liability Insurance: This protects the business in face of a cyberattack. It includes data breach insurance, which protects the business if client information is lost or stolen.
- Employment Practices Liability Insurance: This liability insurance offers compensation for legal fees in case an employee or potential employee sues the company for their employment practices. Claims may involve sexual assault, discrimination, wrongful discipline and other violations of legal rights.
There are many specialized coverages for certain industries. Be sure to consider the risks your company faces when adding coverage to your business owners policy. Directors and officers insurance is useful in the event your directors or officers face liability risks. Restaurants may want to invest in spoilage coverage and equipment breakdown coverage. Aside from your BOP, businesses may also need commercial auto insurance and workers compensation insurance. Both of these coverages are required in Florida.
How Much Is A Business Owners Policy?
Prices for BOPs vary. The amount of coverage you purchase, the risk of your industry, history of claims and location of the business all account for the price of a BOP. BOPs cost somewhere between $350-$3,000 a year (approximately $29-$250 a month).
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