How to Know What Insurance Policies You Need for Your Business
A big part of doing business is making sure that your company is properly insured. The type of policy you should be buying is based upon the type of products and/or services you are providing to customers. Small business owners can buy these policies through any general insurance agent such as business insurance Morgantown WV where many agents can quote and write these policies.
As this Wikipedia article shares the main type of insurance policy for any business is a general liability policy. This is a policy that covers the most common types of risks that businesses face. It covers if the business, its owner, or one of the employees causes bodily injury or property damage to ones of its customers. This includes damages both on and off the premises of the company’s location.
A commercial general liability policy also covers advertising injury if the business is accused by a competitor of stealing its marketing strategy. Medical payments are covered if someone on the premises of the business was to hurt themselves, most often by slipping and falling.
This type of policy does not cover professional liability, though, which is if the company does not provide the service to clients that it should have. Other exclusions include vehicles used in the business, workers compensation, liquor liability, pollution, and directors and officer’s liability. These would all instead by covered under specialized insurance policies.
Many types of businesses can opt for what is known as a BOP policy, or Business Owner Policy. This article gives an overview of what this type of policy is. A BOP policy can be thought of like a combo policy that combines different types of policies which are general liability insurance, commercial property insurance, and business interruption. This gives the business owner broad coverage and just one insurance policy to keep track of rather than three separate ones. Any vehicles used in the business do need a separate commercial auto insurance policy, however.
The coverages in a BOP policy are for the most common liabilities that businesses face. It covers their general liability exposure while also adding in any property that the company owns. It also covers business interruption which is if the business has to temporarily close due to a covered claim. This could be a fire on the business premises where the policy pays for all ongoing expenses of running a business while repairs are being made to the property.
Someone that works as a general contractor is usually best served by purchasing just a general liability policy and a commercial auto insurance policy for the vehicle, they use to drive to job locations. Small to medium-sized companies that operate a physical location should instead be looking at a BOP policy to cover both their liability and property such as computers, copiers, and office furniture.
In order to keep the administration of insurance policies to a minimum, and to help streamline any claim, all of a business’ insurance policies should be through the same insurance company, or at least the same agent when possible. This means that the adjusters can coordinate coverage and quickly settle any claim so that the company can return to regular business.