If you own a small business, you know that the risks presented on a daily basis can be overwhelming. It is because of this added stress level that you and your business needs proper insurance coverage.
Now, while there are specific insurance policies available that insure your business against certain risks, buying separate policies for every potential risk could unfortunately prove to be a rather expensive venture.
Buying multiple policies could also prove to be very time consuming. Choosing individual coverage requires you to not only educate yourself about what each policy covers, but also forces you to research who the best provider for that particular policy is. A business owner's policy combines several of the most needed small business insurance coverages into one single product.
A business owner's policy will differ from company to company, however, most of them offer coverage against the same risks. The biggest advantage of having a business owners policy in place is that it offers multiple coverage solutions while being a more affordable solution.
The first coverage offered in a good business owner's policy is liability coverage. As a business owner, you can be sued by a customer or employee for an injury they may suffer while on your business's premises. You could also face liability for any damages suffered by the general public as a direct result of your operations. Liability coverage insures your business in these situations, while also adding the additional benefit of covering the cost of your defense in the lawsuits.
Another benefit of a business owner's policy is that it provides coverage if there is a loss of business income. Incidences such as the breakdown of your machinery or accidental damage to your shop could lead to the temporary loss of business income. A business income policy supplements the lost income you suffer over a specified period of time. This gives you the opportunity to get your business back up and running normally.
A business owner's policy can also provide contents coverage. A contents coverage plan insures the contents of your business against unforeseen incidents like theft. It is important to note that content insurance coverage insures just about all the contents on your business's premises other than money, gold, or stock.
The last part of a typical business owners policy is property coverage. Property coverage is mainly used to cover the structure in which the business is operated and any structures or buildings owned by the business. Remember, each insurance company has its own tailor-made business owners policy and picking the best one for your business requires doing a little homework.