Business insurance helps cover financial losses from accidents, natural disasters, theft and more. It’s a smart investment for any type of company.
Consider these business insurance coverages for your company: Business owners policy — a three-in-one policy that bundles general liability, property and business income insurance. Commercial auto and workers’ compensation are often included as well.
Business Owner’s Policy (BOP)
Many insurers offer a business owners policy (BOP) that bundles property and liability coverage in one commercial insurance package. These policies are typically less expensive than purchasing the coverages individually.
The property portion of a BOP protects businesses by covering losses to their owned properties, such as buildings, furniture and fixtures. The liability portion helps cover legal costs and expenses that arise from lawsuits related to third-party bodily injury or property damage stemming from day-to-day operations.
BOPs do not typically include worker’s compensation or commercial auto insurance, which are often available as separate add-ons. Depending on the insurer, other optional coverages may also be included, such as crime and employment practices liability.
Some insurers have specific requirements that businesses must meet to qualify for a BOP, such as location, size and revenue. However, the convenience and cost-effectiveness of a BOP makes it an attractive option for many small businesses. In addition, it gives businesses greater leverage when negotiating with landlords and major customers who require proof of insurance as part of the rental or contract process.
Commercial general liability insurance, or business owners policy (BOP), is one of the most common and important types of small business insurance. It protects your company against claims of property damage, bodily injury and advertising injury. NerdWallet recommends this coverage for most companies.
Even if you run a safe business, accidents can happen. For instance, a customer might trip over an extension cord in your store and break their toe. Or a competitor might claim that your advertisement infringes on their copyright. General liability insurance helps pay for legal costs, judgments and settlements that result from these incidents.
You can purchase this coverage as a standalone policy or as part of a BOP. A BOP usually bundles general liability with other types of business insurance, such as commercial auto and business interruption insurance. These policies are typically more affordable than purchasing the coverages separately. And they help you meet the coverage requirements of certain customers, landlords and vendors.
This type of business insurance insures cars and trucks that you own, lease or use for work. It offers similar coverage to a personal auto policy, but with higher limits and tailored protection for vehicles used in the course of business. A commercial auto policy may also include coverage for rented or borrowed vehicles, medical payments to others in the event of a car accident caused by you or an employee and collision and comprehensive physical damage loss coverage for the company’s owned vehicles.
It’s important to note that a personal auto policy will exclude any vehicle driven for business reasons, so even if you or your employees drive a personal vehicle to work, you may need this additional protection. Commercial auto policies can include “permissive use” coverage for family members who may occasionally use the vehicle for work, as well. Typically, the only requirement is that the driver must have a valid license. assurance entreprise