An Overview of Business Insurance
Business insurance, also known as commercial insurance, assists the business owner in protecting his or her company’s revenue, property, and other assets from loss. A business owners’ policy (BOP) provides three kinds of coverage to financially protect you and your business. The main types are business interruption, general liability, and business property coverage. One is also always free to purchase extra coverage to optimize your insurance plan to better meet your specific needs and to better fit with the kind of operation that is being run.
How it Helps
This coverage is tailored to business owners. The BOP helps one safeguard the business from the financial consequences of various perils and losses. Normally, this kind of insurance will cover your business against such events as fire, lightning, falling objects, wind, theft and even vandalism.
The Types of Coverage
General l Liability
This component works to cover financially any injuries resulting from negligence. The general liability policy will help handle medical and legal costs in case your business is subject of a lawsuit due to an accident that occurred on the premises. Keep in mind that general liability insurance only offers limited coverage. If the injured party’s medical costs exceed your coverage level, you might be forced to pay out of pocket the remaining balance of costs.
Business Property Protection
Business property coverage helps protect your business’ building and the contents within from protected loss. For example, if a fire were to damage your business structure, property insurance helps compensate for repairs. Business property coverage also has limits and will come with a deductible. Property coverage limits can be determined by the estimated cost to replace, repair or rebuild the covered business property. (The deductible is what you pay before the claim is finalized and the company pays out.)
Business Interruption Coverage
Business interruption coverage or business income coverage is an important aspect of a business insurance policy. This kind of coverage assists one in recovering lost income should the business be affected by a covered event. For example, if a floor is uninhabitable as a result of fire, business interruption coverage can help you find a new place to operate during any repairs. It can also help with any revenue losses as well.