Businesses face a number of risks, requiring a variety of insurance policies for protection. This can cause confusion, coverage gaps, and other issues for small and medium-sized businesses that have only standard risk factors. For these businesses, many insurance carriers offer a business owners policy. This policy combines property and liability insurance coverage to cover many of your insurance needs.
Even unique businesses have some standard risks. Fire, theft, storm damage, and injuries are common small business insurance claims and are protected against in commercial property and general liability policies. By combining these policies into a single business owners policy package, you can simplify your insurance purchase while also saving money. These polices can often be customized to add additional protections common to your industry.
Most business owners packages come with three standard protections. Each of these protects you from a specific area of risk.
Commercial Property Insurance – If your business property, including your office, computers, equipment, tools, furniture, and other items are damaged due to a fire, theft, vandalism, storm, or other covered event, your property insurance will help pay for repair and replacement.
General Liability Insurance – If a customer is injured at your office or job site, or property damage occurs due to your actions, general liability insurance helps to cover medical expenses, repairs, and legal fees.
Business Interruption Insurance – When your business is forced to temporarily close due to damage or other covered event, this coverage can help pay for rent, utilities, salaries, and other expenses you incur until you can reopen.
Though your business faces standard risks, it is also unique. With a business owners package, you can often customize your coverage, adding additional insurance while still maintaining a cost savings over purchasing the policies separately. Some carriers offer packages for specific industries, while others allow you choose the coverage you want. Some commonly offered additions include:
Your agent can help you find a business owners package that’s right for your business’s specific needs.
Though your business owners package can cover many of your basic needs, certain insurance coverages cannot be included. In MA, if you have employees, you are required to purchase a separate workers compensation insurance policy. Similarly, if you own company vehicles, you will need a commercial auto insurance policy. You should discuss all your insurance questions with your agent who can help you determine if there are other policies that may be beneficial.
Businesses need insurance to protect from a variety of common events. With a customizable business owners policy, you can cover many of your insurance needs with a single policy, simplifying your insurance purchase while saving you money. This convenient option for small and medium businesses can eliminate coverage gaps, making sure you are protected from the situations your business is most likely to face.