A small to medium sized business that is in need of insurance will typically purchase a business owners policy. This is a policy combining basic coverages needed by a small business into a package. Types of coverages that are included are for various types of commercial insurance. These types include liability, property, and other additional coverages. Research your options when searching for a policy.
This type of coverage is referred to as General Liability. This is coverage that covers operations of your business and property that you may operate lease, or own. Protection includes payments for any type of bodily injury to guests, customers, and vendors on the property, damage to property that is caused by an employee, and for medical expenses. Coverage is also provided for products and completed operations, personal injury, advertising injury, and damage to property that is rented by your business.
This coverage is provided to pay for damages to your building and to other structures that are located at your property. Coverage is also provided for business personal property. This is property that is used by your business to conduct operations. Business property includes inventory, furniture, and any electronic equipment such as computers.
When your business suffers damage and is forced to close for repairs, business interruption coverage is available. This coverage will pay for loss of income and extra expenses to continue business operations at a temporary location. Coverage will also pay for employee wages. A loss that is incurred will need to be covered by your policy for this coverage to apply. Many insurers offer this coverage based on actual loss sustained or per occurrence.
A business owners insurance policy will also offer coverages for crime and inland marine. Coverage for inland marine typically involves items that are in transit or being transported to a different location over land. Also included is electronic data, property at a construction project, and computer equipment.
Coverage that is available for a business owners insurance policy are based on the requirements needed for your business. Liability limits are typically available at levels of $300,000, $500.000. or $1,000,000 depending on the business.
Additional coverages can be added to your business insurance policy with various endorsements. These include accounts receivable, electronic media, employee dishonesty, ordinance or law, outdoor signs, or other specialized coverages offered by the insurer.
A business owners policy may come with additional coverages that are optional. Coverages that may be offered include equipment breakdown, employment practices liability, hired & non-hired auto, backup of sewers and drains, and scheduled equipment. Common coverages for most businesses that you may need for your business include equipment breakdown and backup of sewers and drains. The purpose of equipment breakdown coverage is to provide protection if mechanical equipment fails. This includes a boiler, heating system, phone system, and other covered equipment. If your business experiences water damage, protection for damaged property is provided by backup of sewers and drains.