Most small business owners do not have primary insurance covers that protect their ventures from losses and cover general liability and commercial property insurance. Most business people view owning business owner insurance as a surplus luxury compared to the several competing business needs. Commitment to paying monthly premium rates is hard for most business owners, and they choose to risk their businesses. However, companies without insurance are known to be making a mistake since the venture can be faced with several risks such as property damages and robberies.
Who needs Business Owners Insurance?
- A business is located at a physical place, e.g., an office, a garage, or a storage unit.
- Any business that a customer can sue in case of an accident within the premises.
- Any business owner whose business has assets that can be stolen or damaged.
Below are some key points a business owner should know about business insurance.
- Business Interruption Insurance
The business owner’s policy usually covers any property damages that occur to the premises. If the property damage prevents a business from operating smoothly and leads to income losses, the BOP can cover the losses. Thus, companies with BOP can always recover any income losses during the period they cannot operate. A business is, therefore, able to pick up and rebuild during this time.
- Business Owner’s Policy
The business insurance cover begins with the owner’s policy. It includes commercial property and overall liability coverage, among the two most significant risks faced by business owners. They offer business protection if any client’s misunderstandings or even when a client’s property is damaged by mistake. The insurance takes care of damages caused by fire, burglary, body injuries, and property damages. Some also offer advertising and personal injury coverage. Additionally, there are other optional coverages that an entrepreneur can choose to include in the coverage, such as data breaches and business income of the business premises.
- Professional Liability Insurance
Professional service businesses require this type of insurance, also known as errors and omissions. Sometimes a worker or a business owner may need to be protected from lawsuits due to negligence or mistakes. The insurance covers cases where the business makes a mistake in calculations by paying for the acceptable charges. It also covers any other costs that arise due to being sued with or without an error.
- Workers Compensation
A worker’s compensation insurance caters for any death benefits, lost wages, medical expenses, rehabilitation, injuries, and illness while on the job.
- Cyber Insurance
Companies are always victims of data breaches and hacking. Cyber insurance protects the company’s confidential information such as financial, private employee information, and client information whenever the business gets hacked.
Different companies have different requirements to be included in the insurance cover, depending on the type of business. Various types of policies are provided to business owners, and each has different coverage. Before settling on a particular procedure, a venture owner is expected to research and find out the content that best fits the nature of their business and situation.