Even the most well-run business can be faced with a disaster or lawsuits. Property & General Liability insurance for businesses usually combine protection from all major property and liability risks in one package. (They also can be purchased separately as well.) One common kind of package purchased by small and mid-sized businesses is the Business Owners Policy (BOP).
Property insurance for buildings and contents owned by the company -- there are two different forms, Basic and Special. The special form provides more comprehensive coverage and is the one we highly recommend.
In addition, businesses can tailor a Business Owner’s Policy to help meet your unique needs by also adding coverages for Business Interruption or Business Income, and Cyber/Technology Breach such as data breaches &/or ransom ware. In addition, you put your professional judgment and expertise on the line just about every day. Even if you’ve done nothing wrong, your business can be sued by a customer or client claiming a negligent act, error or omission in the professional services you provided. Add Professional Liability (Errors and Omissions) coverage to your BOP insurance to help protect your business from this type of claim. Keep in mind, some types of businesses may not be eligible for this coverage on a BOP and will need a separate EPLI Policy (see our EPLI tab for more in-depth information.)
Business interruption insurance, frequently called Business Income, covers the loss of income resulting from a fire or other covered catastrophe that disrupts the operation of the business. It can also include the extra expense of operating your business out of a temporary location after a loss while your damaged location is being renovated.
Data Breach Coverage
Any business that handles or stores private customer, patient or employee information is at risk for a data breach. When this sensitive information is lost or stolen, it’s important to act quickly to restore confidence in your business. If a breach occurs, Data Breach coverage can help pay for the expenses to notify impacted individuals, engage credit monitoring services (if warranted), public relations and more. Coverage can also help with defense and settlement or judgment costs in the event your business is sued because of a breach. And coverage is provided even if private data is stored internationally. Additional coverage options can help:
- Replace lost income and pay for extra expenses incurred to keep your business running if your business must close temporarily or slow operations due to a covered data breach.
- Protect a business from a data breach that occurred prior to the policy effective date.
- Pay for extortion expenses and ransom payments associated with the threat of a data breach.
General Liability Insurance, also known as Commercial General Business Liability, protects a company’s assets and pays for obligations – medical costs, for example – incurred if someone gets hurt on your property or when there are property damages or injuries caused by you or your employees. Liability insurance also covers the cost of your legal defense and any settlement or award should you be successfully sued. Typically, these include compensatory damages, nonmonetary losses suffered by the injured party, and punitive damages.
General liability insurance can also protect you against any liability as a tenant if you cause damage, such as by fire or other covered loss, to a property that you rent.
Finally, it can also cover claims of false or misleading advertising, including libel, slander, and copyright infringement.
Because each business is unique, we tailor a program to address your situation knowing that companies change over time.
Taking A Business Inventory
What would happen if a fire or other disaster destroyed your property, making it impossible for you to get back to business right away? Would you remember what property had been destroyed? One way is by taking a complete inventory of all your personal business property, determining its value, and deciding what's worth insuring. Having an up-to-date business inventory will help you get your insurance claim settled faster, verify losses for your business' income tax return and help you purchase the correct amount of insurance.
Start by making a list of personal business property, describing each item and noting where you bought it and its make and model. Clip to your list any sales receipts, purchase contracts, and appraisals you have. Make sure this inventory is off-premises so that it does not get destroyed when your business is damaged.