Is your business insured? If you answered no to this question do not worry, you are not alone. Unfortunately, less than thirty-percent of small business owners are covered by a standard Business Owner’s Insurance policy, or BOP for short. It is completely understandable. When you are starting a small business, or even growing an existing business, there is a plethora of pressing issues that take precedence. Purchasing an insurance policy may even feel like an unnecessary expenditure.
However, it is extremely risky to simply cross your fingers and hope that nothing bad will take place. There certainly are numerous reasons why you should avoid leaving the fate of your business to chance. For example, what would happen to your organization, and even your personal finances, if the business were faced with a threatening lawsuit? The good news is that a Business Owner’s Insurance policy is a cost effective way to protect both your business and yourself.
The Basic Business Owner’s Insurance Policy
The foundation for small to mid-size business insurance is the Business Owner’s Insurance policy. It basically covers general liability, and commercial property loss, which are two of the largest threats that business owners potentially face on a daily basis. General liability insurance protects your company from lawsuits that are filed by a third party. For example, if a customer slips and falls in your office or at your store, the general liability insurance covers the damages. Commercial property insurance typically covers damage or loss to your organization’s property. For example, your building burns down, or a burglar robs all of your computers. There are additional policies that you can add to the Business Owner’s Insurance policy to protect your company and yourself even further.
The Business Interruption Insurance Policy
If your business suffers from a disaster, such as a fire, the property is covered under the commercial property insurance section of your BOP. However, if the property damage prevents you from operating your business it can be crippling to the financial health of your company. The good news is that a Business Interruption Insurance policy can help replace income that is lost during the down time. In essence, the Business Interruption insurance is a real lifesaver that can help you stay on your feet during the rebuilding process.
The Professional Liability Insurance Policy AKA The Errors And Omissions Policy
This type of business insurance protects against lawsuits that are caused by mistakes made by yourself or your employees. It is most often utilized by professional services business such as accountants, lawyers, and marketing agencies to name a few. For example, if an accounting firm makes a mathematical error on a client’s tax return, and the Internal Revenue Service penalizes the client, they may very well sue the accountant. The Professional Liability Insurance policy, also known as the Errors And Omissions policy, will help cover the losses. People tend to sue even if you have not made a mistake. The Professional Liability Insurance policy covers your attorney fees and court costs even if you win the case.
In conclusion, being in business can be exceptionally risky. This holds especially true for small business owners. Do not make it even riskier by forgoing a Business Owner’s Insurance policy. It can actually make the difference of staying in business, or closing your doors forever if a nasty lawsuit or unfortunate disaster happens to strike. There are numerous other areas of your business where you can look to save money. Do not be part of that less than thirty-percent of business owners that fail to carry a Business Owner’s Insurance policy. Many of them end up looking back and wishing that they had been smarter about business insurance.
For more information about business owners insurance or other types of business insurance please contact Zawada Insurance Agency today and one of our licensed, experienced, and dedicated agents will answer any and all questions that you may have.