It is important for every business owner to protect the company that they have worked hard to create with a comprehensive business insurance policy. This type of coverage is often the first line of defense when it comes to accidents, injuries, medical bills, and even lawsuits that have been directed at the company or its representatives. For those that are unsure of exactly how a business owner’s policy (BOP) works, here is a closer look at what this coverage entails for the average company and why it is so important no matter the size of a company or the industry it is in.
An insurance policy for a business entails a number of more specific policies that are meant to protect the business’s assets, the business owner, employees, and countless other parties. This typically begins with liability insurance, a form of coverage that is a legal requirement for almost every business. Liability insurance essentially protects the company in the event that an individual has claimed the company, its products, its services, or its representatives have caused them harm. This form of harm can range from physical injuries and emotional stress to damaged property or lost wages.
At this point, the other primary form of coverage that a BOP will provide is property insurance. Property insurance will provide the much-needed funds after the theft, damage, or destruction of property. This not only pertains to business property such as a warehouse building or office supplies, but it will also apply to any property that is considered to be business property. The amount of coverage needed for the business will be determined by their overall assets.
A business insurance policy can incorporate any number of protective measures that will keep a business running successfully no matter what takes place. Other popular additions include excess insurance, umbrella policies, natural disaster coverage, commercial auto insurance, workers’ compensation, and much more.