Business Owners Insurance sounds like a very simple term, right? You own your own business, so you in turn need a business owners insurance policy. This is true, but there are so many layers to a “business owners policy.” It is a much more in depth and comprehensive policy then just the basic general liability. There are many different items that should be considered when discussing the business owners policy (which will be referred to as BOP going forward).
The basic general liability policy with protect you if you or your employees were to cause bodily injury or property damage while conducting business. The BOP will also protect you in this manor, but has the ability to add so many other types of coverage. If you are renting or own an office space, the BOP can list a limit of insurance for your business personal property. This would be any items within the office that are not attached to the building. If you DO own the building you use for business, you can also insure the building on a replacement cost basis. There are many optional coverages to consider with the building such as water/sewer back up, equipment breakdown coverage, and many more that can be discussed.
One of the most important parts of a BOP is a coverage many do not consider. This is the “loss of business income coverage.” What if you were to have a large fire loss on the building you own or rent? You are unable to continue normal day to day business activities which in turn causes large financial hardship. The BOP normally lists this very important coverage and states “12 months actual loss sustained.” This means your policy would protect your financial loss if you were unable to get back to work for up to a year if, for example, the building needs to be completely renovated or re-built.
You may also need to schedule pieces of equipment or tools that travel with you from job site to job site. There is a way to schedule individual items to make sure they are covered wherever your job may be. There is also cyber liability, data compromise coverage, employment practices coverage, coverage for customer’s items you may have in your possession (you own a body shop and restore customer's vehicles), among many other coverage you may need.
It can be overwhelming, but when broken down and explained in simple terms, the puzzle pieces will begin to fit together. Let Snyder Insurance Agency help you protect your business the best way possible - request a quote!