Insurance for small businesses is sometimes referred to as commercial insurance. It is necessary for a small business to get because it helps to cover things such as the property, the business’ assets and against other losses. There are three basic kinds of coverage that can come included in a Business Owner Policy for insurance. The three basic BOP types are general liability coverage, business property coverage and business interruption coverage. Business owners may purchase additional types of insurance coverage depending on their specific needs.
What Does Insurance For Small Businesses Cover?
Insurance policies for small businesses will protect them against any covered perils and financial losses. Most of the typical covered perils include fire, lightning, theft, wind damage and more. It is essential that you read through any policy very carefully to understand what is covered and what is not.
General Liability Coverage Insurance
Most small business insurance plans will include general liability coverage. When you have a business and someone gets injured there, you have coverage to protect you if their injuries are a result of your negligence. This coverage can help to pay for their medical bills and expenses. It can also help your business out if there are legal expenses incurred on your part if the injured customer ends of taking you to the courts over the accident and wants to sue your business. There are coverage limits for general liability coverage, however. If the costs exceed your limits for the cost of the injured party’s medical bills, you might have to end up paying out of pocket for the rest.
Small Business Property Coverage
If you own the building in which your business is located, you will also need to get property coverage. This will help protect your business from certain covered perils including theft, storm damage, fire and more. If you have property coverage and your business furniture gets taken or stolen, property coverage is the type of insurance that will help to replace those items. It is important to keep in mind that this type of insurance coverage will come with limits and deductibles. A deductible is the amount a business will have to pay out of pocket to place a claim. Just like with health insurance, you will be able to choose your coverage and deductible amounts when you sign up for insurance. When searching through online providers of small business insurance, you will find that there are limits to the amounts they will cover on a claim.
Business Interruption Coverages
Interruption coverage for a small business is sometimes referred to as income coverage. This is usually covered under the owner’s insurance policy and will help to replace some income which may be lost after being affected by a covered peril. As an example, the interruption coverage might cover expected income during repairs on your business after getting damaged from a fire or other weather related event. However, these coverage options are also subjected to limits as well. You should ask your insurance agent about what limits there are on your small business insurance coverage.
Additional Coverage Options
As a small business owner, you will be able to choose different types of coverage to include in your policy. These additional coverage options will vary depending on the type of business that you run.