As an entrepreneur, you must realize that running a business comes with big risks, and this is especially true for small businesses. Covering these risks by having business insurance is essential, and a business owner’s policy is the right insurance for small businesses. Learn more about business owners policies with the below answers to frequently asked questions.
What is a Business Owner’s Policy?
It’s a policy that combines coverage for numerous risks your business may face, such as property and liability risk. This policy lets you pay less premium by purchasing coverages in a bundle, instead of buying them separately. It is also convenient to own this policy because you can easily add extra coverage into it.
Who needs a Business Owners Policy?
A business owner’s policy is suitable for your business if:
- You have assets that can be easily damaged or stolen, including cash, inventory, and even digital assets.
- The operation of your business is being held in a physical location outside your house, such as a rented office or an apartment building.
- You have less than 100 employees and $5 million in revenues.
- Your business faces high risk of being sued by customers.
Who is eligible for a Business Owners Policy?
If you want to purchase this policy, you would need to fit the requirements set by the insurer. These requirements usually differ from one insurance company to another, but it generally includes:
- The type of industry of your business.
- The location where you conduct your business.
- Number of employees your business hires.
- Revenue generated from your company each year.
What does the policy cover?
In general, the coverage from a business owner’s policy includes:
- Property coverage protects assets owned by your business, such as buildings, machinery, equipment, and inventory.
- Liability coverage protects your company from lawsuits made by customers because of injuries or property damage against them. It will also protect your company if it is being sued for copyright infringement.
- Business interruption coverage provides replacement of loss of income when your business is unable to operate. Through this policy, your insurer can also help your business with the expenses needed to operate in another location.
You have to take note that a business owner’s policy only covers common risks small businesses face. Your specific business might need additional coverage, such as commercial auto insurance, professional liability insurance, or worker’s compensation insurance. An insurance agent will provide great help in determining what your business needs.
At Filer Insurance, Inc., we work hard in making sure that our clients are well-protected with business insurance policies that they can afford. To learn more about how we can help you, please contact our agency at (305) 270-2100 or Click Here to request a free quote.