If you’ve recently started your own business, or are just thinking about it, you will need to carefully consider the type of insurance you’ll require to give you adequate protection. There is little doubt that you’ll need basic coverage at the very least, such as general liability, property and business interruption, but it can be beneficial and cost effective to purchase a package that includes them all. Known as BOP’s, or Business Owners policies, these are often more
manageable and cost effective than buying separate insurance policies, and most can be customized, too.
Here’s more about what a standard BOP will provide you with as part of its’ coverage:
- The cost of damage claims made against you involving people or property, and this can include medical expenses, repairs, replacement costs, legal fees and any compensation should you be found to be at fault.
- Damage caused by covered disasters to buildings and/or contents, such as fire or theft. Property insurance covers owned or rented properties, and some other items of value and/or importance such as computers, telephones and other business equipment. If you have additional items you wish to be covered, then those can simply be added to the policy.
- Losses to finances should something unforeseen prevent your business from operating, and this can include loss of income, costs associated with moving, fees for the hiring of equipment and any extra rent payments you had to make if you were forced to temporarily (or permanently) relocate.
- Repairs of equipment or replacement costs should it be beyond repair, with the option to add coverage for the following:
The cost of claims made against you, by employees, and this can include wrongful termination and sexual harassment to name but a few.
Costs incurred while recovering from a breach in data, which can include investigation costs and those associated with informing customers, fixing systems and paying government fines etc.
Do you need a business owners policy?
If you’re running your own business from home or another location, have the potential to face legal action from a customer or employee, and have valuable assets that need to be protected, then a BOP might prove the safest and most cost-effective option.
While BOP’s are not required by law, liability insurance often is, and your customers may require that you have it; fortunately, this is included as a standard feature of every BOP.
If your business premises are rented, then your landlord may require proof of your property insurance coverage before they allow you to sign the lease, and as with liability insurance, this is included as standard with a BOP.
As a small business owner without the right protection, you could see your profits wiped out and your entire livelihood disappear if faced with a claim made against you; it simply isn’t worth the risk. You’ve worked hard to get where you are, so why not protect all that hard work with the right insurance policy?