Questions on small business insurance? We’ve got your answers

Small businesses are everywhere! It’s estimated there are more than 28 million small businesses operating in the United States which includes contractors to retail shops and everything in between. All businesses regardless of size and industry are exposed to loss, potentially catastrophic, and need protection. Remember, a well-tailored insurance program is important and purchasing coverage should not be taken lightly. Here are some answers to common questions to help get you started.

1. Who can guide me through this process?

Independent insurance agents are trusted advisors who will meet with you one-on-one and take the time to understand your business and come up with the best plan to provide adequate coverage. Remember, good-tailored business insurance policies can help protect you and your venture in the areas you need it most.

2. What types of business insurance are available?

Your independent insurance agent can review in detail the types of policies available and necessary for your business but in summary, these are the main types:

• Property — covers the physical location, whether it’s rented or owned, and its contents from perils like fire and theft
• Casualty — liability coverage for your premises exposures such as slip and falls, as well as for your products that are manufactured and completed operations exposures for when the project is finished and you have left the jobsite
• Commercial Auto — covers your business for loss or damage to vehicles used by your business and for damage to others caused by your business vehicles
• Commercial Umbrella — extends the limits of the underlying policies and replaces coverage once the underlying limits have been reduced or exhausted
• Workers’ Compensation — covers employees if they are injured on the job – if you have employees, even if it’s only one, by law you are required to have workers compensation insurance

 

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3. I’ve heard the term “BOP” used with business insurance. What does that mean?

BOP is an acronym for “Business Owner’s Policy” and is often used for small businesses to bundle policies into one package for a more cost-effective approach. BOPs typically include business liability and property insurance. There are some exclusions like workers’ compensation and commercial auto which can be added to your policy as an additional endorsement.

4. How often should I review my insurance coverage?

At the very least, you should review your business insurance annually. However, if your business changes – let’s say you purchased additional operating equipment – then you should connect with your independent insurance agent prior to the purchase to make sure your current policies fit your current needs.