From the first day of opening the doors of your business, an entrepreneur is exposed to certain risks that are best dealt with using a Business Owner’s Policy. A business without the right protection is just one lawsuit or catastrophic event away from folding up.
Fortunately for entrepreneurs, there are numerous insurance policies to come through when these risks show it face. According to Forbes, a Business Owner’s Policy is one of the essential insurance coverage a business must-have.
That’s why this piece will focus on what a Business Owner’s Policy can do to help protect your business. For starters, let’s understand the basics of Business Owner’s Policy; this is a combo of all the coverage that a business will need. This ranges from property insurance, business interruption insurance, vehicle insurance, crime insurance, and liability insurance.
Let’s highlight the strengths of the Business Owner’s Policy;
1. General Liability Insurance
This is the most important coverage any business will need. Right from day one of your business, you’ll need to be protected against financial burdens of claims from bodily injury, personal liabilities, property damage, legal defense, and others.
Your insurance advisor’s job is to assess your risk and recommend the right general liability insurance around it.
2. Business Interruption Insurance
The Coronavirus pandemic has taught businesses always to be prepared for the worst as it’s not only major disasters like hurricanes or fires that can cause loss of income. With business interruption insurance, you can recoup your lost income for the period.
While this is often considered optional, be sure to ask your insurance advisor if your business needs one.
3. Commercial Property Insurance
This is to protect three things; your business building, your belongings, and other people’s belongings. Through this coverage, your physical locations in the form of shop, warehouse, office, and other buildings are covered against any hazard as specified in the policy.
It is expected that there will be your belongings and other people’s belongings; this will also be covered in the policy.
The cost of your Business Owner’s Policy is determined by the number of employees, industry, location of the business, the building’s age and size, and more.
Regardless, know that a BOP can be customized according to the peculiarity of your needs and budget.