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Why You Should Consider Business Owners Insurance 

By August 2, 2021Insurance
Man in suit with business assets

Business insurance is needed for any size business. It helps to protect the owner from costs like property damage and liability claims. Protect your personal assets by getting insurance ensuring you will be protected.

Protect your business and assets from accidents and incidents that could devastate your company financially. The insurance will help cover your business from expensive out-of-pocket expenses or payouts.

What Type of Business Insurance Do You Need?

All businesses need different insurances from large to small business owners. Your state will require some form of insurance. Make sure you check your state laws so you know what type of specific insurances are required. BOP insurance (business owners policy) is a necessary insurance no matter what state your business is located in.

A BOP combines three separate types of insurance. Including business property insurance, business liability insurance, and business income insurance into one policy. Business property insurance covers damages done to the business location. This covers the physical business assets on the property like tools, furniture, and documents. Liability coverage can protect your business from any liability claims made against your business.

One type of liability claim that could be leveraged against your business includes a customer injuring themselves on your property. This coverage will help cover any expenses like medical bills and fines.

Income insurance will help cover loss of income that occurs when the business cannot operate. This insurance will help you pay bills, keep payroll, and survive the temporary shutdown of your business. 

A temporary shutdown could be caused by damages to your business location that prevents you from working. This insurance will help cover costs until you can get back into working order.


Other Insurances You Might Need?

Different states require different types of insurance some common insurances needed to effectively run a business include:

  • Workers Compensation
  • Unemployment Insurance
  • General Liability Insurance
  • Business Interruption Insurance
  • Disability Insurance

Make sure you check your local and state insurance guidelines so you are sure you have the proper insurance coverage. 

Worker’s compensation will provide financial support to any employee that is unable to work due to a job-related injury or illness. This is very important especially if your employees are required to perform strenuous physical labor. Unemployment insurance will help cover the cost of benefits to former employees that are laid off from their position. This could be due to downsizing or company reorganization.

General liability insurance can be a standalone policy or included in your BOP coverage. It protects against physical injury, and property damage. To check whether your current BOP policy covers your business, call your insurance company.

Business interruption insurance helps to replace lost income when your business is affected by a covered peril. This insurance is usually covered under the BOP policy. Disability insurance helps cover costs associated with an employee being unable to work due to an illness or disability. This insurance will cover a portion of their income while they cannot work, this is not required in all states.


What Is Not Covered By a BOP Insurance Policy?

While BOP insurance covers most incidents that will occur it does not cover all of them. For example, certain types of natural disasters will not be covered under a standard business property policy. 

If flooding is a problem in your area you might want to consider getting a flood insurance policy. This will cover any damages done to property or assets directly caused by flooding. 

Flooding can be caused by a variety of circumstances. From melting snow or heavy rains. This will cover any financial losses incurred by the business due to the flooding.

If your business owns a car or runs a delivery service your company will need car insurance. Car insurance will protect your company if your company car is stolen or in a work-related accident. 


Next Steps

To find the best policy, trust FailSafe Advisers as we work to educate you on all the risks, and teach you the importance of having the right insurance policy. We want to help you and provide an assessment of your insurance needs.  

We can help you choose what package fits you best and provide competitive rates with a top-rated insurance carrier. Just make one call to our agency, and we will make sure you have the coverage you need.