Protect your business against financial loss caused by accidents, disasters or legal claims with assistance from Paychex’s licensed agent who can help select policies to suit both your unique business needs and budget.
Discover the various types of business insurance, and why they’re essential. Additionally, gain insight into selecting appropriate policies and limits so your business is well protected.
Business Owner’s Policy (BOP)
A Business Owner’s Policy (BOP), is a comprehensive insurance package ideal for small and mid-sized businesses that combines various coverages into one comprehensive package that protects against various risks such as property damage and general liability. A BOP typically costs less than buying individual policies separately.
A BOP typically comprises three forms of insurance for businesses – commercial property coverage, business interruption insurance and general liability protections. Commercial property coverage protects your physical assets against fires, windstorms and explosions as well as theft of items related to business operations; business interruption coverage helps pay for lost revenue when operations have to halt due to covered events; while general liability provides coverage against third-party claims such as bodily injuries caused by your ladder crushing customers cars on wet floors or property damages from customers, advertising claims related to false statements as well as lawsuits concerning advertising or false statements related advertising or false statements from advertising or false statements related companies.
Cost of Business Owner’s Policies will depend on factors including property value and type, location of your business, size of operation and history of claims made against it. Insurance providers also consider risk exposure analysis and historical claims when estimating BOP prices. You may opt to customize your policy further with additional coverages such as data breach protection, professional liability or crime assurance – although these extensions may not always be available depending on state laws.
Business Interruption Insurance
Business interruption insurance is an integral component of property and auto coverage, offering protection from financial disruption caused by damage to your business. The aim is to cover rent and payroll as well as any extra expenses required to keep operations going until you can reopen for business.
Physical damage typically sets off this coverage, though certain policies allow it to be activated by other events as well. These could include government-mandated closures (like COVID-19 shutdowns), theft or vandalism, riots or civil unrest and more.
Damage from natural disasters and severe weather events such as hurricanes, tornadoes and hailstorms is also covered under this policy, including theft or loss of supplies. Speak with your agent about which incidents might trigger this coverage as well as its compatibility with current property and business owners’ policies.
Add contingent business interruption coverage to your policy for additional protection from losses that aren’t directly caused by a covered event, like disruption in supply chains or loss of key employees. This feature should be considered when conducting any industry, especially one which relies on distribution channels as its source.
Commercial Auto Insurance
Keeping your company vehicles insured requires commercial auto insurance to protect against accidents. Furthermore, this policy offers liability protection for employees using personal cars or trucks on business. Coverages could include:
Bodily injury liability covers injuries to other people caused by your or your employees in an accident, while property damage liability covers costs related to repairing or replacing other people’s vehicles or properties damaged in an accident by you or your employees. Furthermore, uninsured/underinsured motorist (UM/UIM) coverage provides coverage against medical costs in case an uninsured/underinsured driver causes an accident with you and other vehicles involved.
Commercial car insurance policies differ from personal auto policies by offering higher limits for bodily injury and property damage claims, along with coverage options like rental reimbursement, collision damage waiver (CDW) coverage and specific perils coverage.
As a small business owner, there are numerous factors involved in selecting the appropriate types of insurance policies for your company. But with help from an experienced broker, making informed decisions about your business needs and selecting coverages to best protect it can be easy and effortless. Get in touch with us now to discuss how we can assist your business’s unique requirements – our team of local experts is on standby!
Workers’ Compensation
Workers covered by workers’ compensation insurance are protected against medical costs and lost wages as part of the policy’s benefits, making this one of the most essential types of business coverage. Most states mandate businesses carry this form of policy for their employees – this should be considered among your top priorities as an owner!
Un accident on your premises resulting from customer slip-and-fall can have far reaching legal ramifications for your business, leaving it exposed to legal action from customers and/or visitors alike. CGL provides coverage for injuries that occur on your property or in relation to its operations, helping your avoid costly lawsuits and protect you from costly legal disputes.
Business income insurance can help replace some of your profits if your business were forced to close due to an unforeseen disaster, as well as cover the expenses related to rebuilding and restocking inventory.
Many policies for health and life insurance can be purchased individually or as part of a larger commercial policy, but to find the ideal policy it’s wise to speak to an experienced advisor who can offer tailored guidance that meets your unique requirements.
While business insurance may seem like an extra step in an already tight schedule, it’s essential for the survival of your company. Without it, any disaster could destroy everything that has been built up over the years and wipe out years worth of hard work.
