Running a small business in New York can bring daily challenges, from minor equipment breakdowns to staff or customer injuries; or damage to your building caused by a storm or break in. These daily obstacles are the cost of doing business, but if you're not prepared, they can keep your business from moving forward or even force you to close your doors. That's why every small business owner needs a great business owner's policy (BOP). A business owner's policy combines multiple necessary insurance coverages into one package for a reduced price. Here's what you need to know to find the right policy for your business:
Much like a homeowner's policy, a good business owner's policy will give you several basic coverages
What a Business Owner's Policy covers:
- Liability: If a person is injured on your property or as a result of using your goods or services, liability coverage helps to cover medical and legal costs.
- Property: This part of your policy covers damage to buildings, equipment or other property caused by certain named "perils", such as fire, theft, or wind-damage. It's also possible to get a more robust policy that provides "open-peril" coverage. (This is known as a special, rather than standard, policy.)
- Business interruption: If you can't open your business due to damages related to a covered peril, this type of coverage will reimburse you for lost income and other expenses.
Extending your policy
You can extend your business owner's policy to get extra protection for things like important papers, property in transit or kept off site, or electronic media. You can also purchase endorsements for things that are not normally covered, such as earthquake damage; or to add liability coverage to a vehicle used for company business. Talk to your insurance agent to find out which additional coverages you need for your business.
When a BOP isn't enough
Some types of businesses won't qualify for a business owner's policy because they carry too much risk. Your insurance agent will help you to determine if you are eligible and help to figure out your premium. But even if you do go with a BOP, you may need extra coverage in order to fully protect yourself and your business. A business owner's policy won't include liquor liability insurance; basic employee insurances like worker's compensation, health or disability insurance; commercial vehicle insurance; or malpractice insurance. Again, your insurance agent can help you to determine whether you need a separate policy to protect some aspect of your business, liability or property.
If you're a small business owner, your company is a source of pride and an opportunity to serve others while living your dream. Make sure you have the right insurance so that everyday challenges don't become obstacles that prevent your dream from becoming a reality.
For any business insurance questions, call or contact Executive Insurance & Financial Services today.