Like many new startups or small business founders, you might serve your new enterprise as its only employee. You may even have a part-time business because you’re semi-retired or still employed at another job. No matter how humble your beginnings, you will have a chance to realize your vision. Just make sure that you give that vision the chance it deserves with the right business insurance.
Did you know that a business owners policy, or BOP, can provide you with a package of essential protection for a competitive price? Learn more about how this package of small business insurance works and why you might need one.
How a BOP Benefits Your Very Small Business
You might think you can operate without business insurance because your company is very small and new. You may have neglected coverage because you’re concerned about your budget. Some people run small businesses out of their homes and assume their homeowners insurance will cover them well enough.
Without proper protection, one incident involving a fire, accident, or other threat might wipe out your hard work. Your homeowners policy may exclude business use, and if not, it’s likely to have very limited coverage for your business supplies and equipment.
Many small businesses rely upon a BOP to provide them with essential protection. As with most kinds of insurance, BOP policy details may vary between insurers or even different products. A BOP will generally provide these kinds of insurance:
- General liability: This part of the package will help protect you against claims that your products and/or services caused injuries or property damage. Note that this doesn’t include the professional liability insurance that you may need if you work as a doctor, lawyer, or financial professional.
- Property: This insurance will help reimburse you for damage to your company’s property. This can include any buildings that your business owns and the contents of your buildings.
- Business interruption: If a covered threat interferes with your ability to generate revenue, business interruption insurance can help replace income. This can give you the ability to keep up with operating expenses while you recover.
Today, insurers may also offer you the option to add additional coverage. For instance, you should consider covering your digital information and computer systems in case of physical damage or cyber threats. In general, commercial property insurance will cover your computers and other devices. At the same time, it generally won’t pay for downtime or lost data in case of a cyber attack. For that, you will need coverage that’s tailored specifically against these new and growing threats.
In addition, a BOP may not offer you the options for all the coverage your small business may require. Typical commercial property policies also won’t pay for flood damage, so you might need to buy flood insurance. They also usually don’t include workers compensation or commercial vehicle insurance. Depending upon the size and nature of your small business, you may need additional protection.
How to Insure Your Small Business
Here at Frangquist Insurance Agency in Hartford, WI., we enjoy helping local businesses grow by protecting them with the right combination of small business insurance. We can help you understand your current coverage, assess risks, and shop for the most competitive protection from insurers that serve companies just like yours. Hopefully, you’ll never have to make a claim against your policy, but if you do, we’ll be there to help you with that too. Learn more about our small business insurance services and call at 262-673-9000 or use the online email form today to get started.