Being in business can be risky no matter the industry you’re operating in. But having business insurance policies in place can help mitigate some of these risks.
Employers can save by bundling health benefits into an all-in-one policy known as a Business Owners Policy (BOP), which combines general liability, commercial property and business interruption insurance into one convenient plan.
Business Owner’s Policy (BOP)
A BOP bundles both general liability and commercial property insurance into one policy, saving small business owners money over time. Many organizations need both types of coverage in order to meet landlord requirements when renting or purchasing office space; additionally, proof of both types may be necessary in order to secure credit lines or loans.
BOPs typically cover damages to property you own or rent (such as computers, furniture and fixtures) as well as customers or clients’ personal belongings that come under your care, custody or control. They do not cover worker’s compensation, crime or vehicle coverages which must be purchased separately.
Many service-based businesses, including barber shops and beauty salons; retail stores, restaurants and coffee shops; as well as small construction contractors may qualify for a BOP policy. Businesses which often encounter greater risks, like bars or nightclubs may need more tailored commercial policies instead. Therefore it is crucial that businesses work with an independent insurance agent who understands their industry’s risks to help determine whether BOP or commercial coverage is more suitable.
Commercial Auto Insurance
Commercial auto insurance provides vital protection for automobiles owned, operated or maintained by businesses. A typical policy typically includes physical damage coverage (comprehensive and collision), medical payments coverage as well as uninsured/underinsured motorist coverage for business automobiles. Furthermore, many policies provide coverage for hired or non-owned autos used by employees for work-related errands.
No matter whether your fleet requires several vehicles or just one truck or van, commercial auto insurance is tailored to meet the unique requirements of each business. As well as covering liability risks, commercial auto policies usually also include coverage for repairs/replacements (subtracting depreciation) plus renting/securing temporary replacement vehicles if needed.
As with property policies, your choice of deductible will have an impact on your rate, along with any endorsements or riders you add on. Consult with your broker-agent about ways to lower risk and costs through proven loss control methods. Typically speaking, higher deductibles usually mean lower rates; just make sure that it is affordable in case a claim comes up!
General Liability Insurance
General liability or commercial liability insurance provides small businesses with protection from some of the most prevalent risks they face, including customer injury and property damage claims, advertising injuries like libel or slander as well as product recall costs or contractual liability claims.
An excessive bodily injury or property damage claim could easily be financially crippling to a small business owner, so nearly all businesses purchase liability coverage soon after starting up, as required by leases or contracts.
GEICO provides comprehensive business insurance solutions designed to safeguard commercial vehicles, employees, property and more. Get a quote now!
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GEICO provides comprehensive business insurance solutions, including workers’ compensation insurance to cover employee medical costs and lost wages in the event of work-related injuries; commercial auto coverage to address accidents caused by vehicles owned or rented by your business; and general liability policies which cover lawsuits filed for bodily injury or property damage claims.
Cyber Insurance
Innovations that facilitate businesses’ success in the digital economy also increase risks related to cyber incidents that could result in tangible and intangible losses for organizations of all sizes. Business insurance can provide protection from these dangers by covering potential damages caused by cyber criminality or data breaches.
Costing of cyber policies depends on various factors, including their coverage amount and deductible; as the higher these are, so too does their premium cost. Employee compensation costs also play a factor; some cyber policies even cover post-data breach costs such as forensic services or public relations expenses.
An effective risk management plan can also lower small business insurance premiums. Restaurants and bars, for instance, can take steps to limit workplace injuries by following safety protocols and paying the entire premium upfront rather than in installments can bring lower rates; having sufficient funds saved up for covering any deductible can further lower overall costs.
Home-Based Business Insurance
Home-based businesses require business insurance. From providing home consulting to professional services, having equipment and inventory stored at your house could become essential. Not to mention client files and sensitive data that must be protected against cyber threats. While homeowners policies provide some coverage against property and liability risks, for most home-based businesses it would be beneficial to purchase a commercial policy with higher limits for maximum protection.
Some insurers provide small businesses with a package policy called the Business Owner’s Policy (BOP), which combines general liability and commercial property coverage into one convenient policy at a significantly discounted rate than buying them separately.
Other providers also provide home-based business policies with liability coverage that provide separate policies for owners with zoning issues or who simply wish to save money by keeping both properties separate. Hiscox offers flexible coverage levels suitable for small businesses, while their quotes can be found online; customers can then manage them using either their app or agent.
