Advantages of Purchasing A Business Owners Policy
Every business owner needs to take the time to consider what insurance policies he or she needs and how much coverage will be sufficient for their company and the type of work that they do. There are, of course, many options available and every company may have different answers to these questions. On the other hand, you can choose to purchase policies separately or bundle certain coverages and this has its advantages. The business owners policy (BOP) is geared to helping small businesses handle some of their more basic insurance needs.
As a business owner, you should be aware that a BOP can help protect your company in the event of property damage, business interruption, or any major legal issues that may arise. These policies are bundled together in one package and allow you to buy multiple policies at a discounted price. A standard BOP policy equipped with property coverage helps protect against a specific list of perils. For example, if your building, or its contents, including merchandise, is destroyed in a fire you’ll be covered. This includes other disasters such as wind, hail, water damage, or vandalism.
You can determine whether to insure for replacement value rather than actual value. The premiums may be a bit higher for replacement cost, but the extra expense may be well worth it to you, especially if it means getting back on track sooner. You may even be able to offset any extra expense by reducing certain types of risks inherent in your business in order to help lower your premiums.
Liability coverage should be a high priority
If someone were to become injured while on your premises, let’s say by one of your employees or due to one of your products, then you’ll need liability coverage to help pay any expenses. It’s useful for paying any medical costs associated with injuries to parties involved or to defend against a liability claim, even in those times when a claim has no merit.
Business interruption or stoppage
If your business operations are interrupted due to a disaster of some sort, whether a power outage, major storm or other unforeseen events, this coverage will help replace any lost income and/or expenses. There are numerous risks and exposures related to running your company and a business owners policy provides answers to these concerns.