Does Your Company Have the Right Type and Amount of Business Owners Insurance?

Ensure your company's financial and legal protection with a business owners insurance policy. Find out how - and how much you may be at risk - by speaking with a VANTREO concierge broker.

Almost every day, we hear stories about how a defective product or an employee's error (intentional or unintentional) resulted in substantial losses to the company standing behind them. In some cases, the business is forced to pay a large settlement to the affected party. In others, the situation may even result in the company going out of business for good.

If your company is not covered with a business owners insurance policy (BOP), the costs of a legal settlement, as well as any interruption in service due to a catastrophe can come directly out of the business, or the business owner's, pocket.

How Business Owners Insurance Can Keep Your Company Protected

Business owners insurance can protect your company's physical and financial assets. This type of coverage can combine protection from major property and liability risks that your business may face - all in one convenient "package." This will often cost less than purchasing all of the different insurance policies separately.

What does business owners insurance cover?

Business owners insurance will often cover a number of different risks, including:

  • Property Insurance - One key area of protection in a business owners insurance plan is property insurance. This refers to the building(s) and the contents that are owned by the company. There are different types of property insurance that a business can purchase including Special Form protection which provides a more comprehensive coverage form.
  • Business Income Insurance - If your company incurs a fire or other type of catastrophic event that interrupts the operation of your business, it could significantly impact the amount of income that the company brings in. Business income insurance can cover lost income to your company. This type of business owners insurance can also cover the added cost that a company may take on by operating out of a temporary location or facility.
  • Liability Protection - Your company may also face situations where the business itself or an employee causes harm to others. For instance, a customer may incur property damage, or even bodily injury, because of a defective product that they purchased from your company. Liability protection can cover your company's legal responsibility in these cases.

Overall, though, BOP policies generally offer a large number of built-in coverages that are important to protecting your small business, such as:

  • Business Personal Property*
  • Building Coverage*
  • Product Liability / Completed Operations Liability
  • Business Income and Extra Expense*
  • Employee Dishonesty
  • Equipment Breakdown Coverage
  • Commercial General Liability

*Optional for some businesses.

Business-specific coverage options are also available:

  • Increased Fine Arts Coverage
  • Accountants Endorsement
  • Lawyers Endorsement
  • Medical and Dental Office Endorsement
  • Eating Establishment Endorsement
  • Spoilage Coverage
  • Customers Goods Coverage (Bailees)

Depending on the size and the needs of your company, there are additional components that could also be added to your business owners coverage.

In some cases, a BOP policy is required. For example, property and liability insurance is typically required by landlords as a condition of the lease. Lenders will generally require insurance as a condition for approving a loan. A BOP policy can provide a comprehensive and affordable way to satisfy lease and loan requirements.

What doesn't a BOP policy cover?

All insurance policies have coverage exclusions. There are a few things that a business owners policy may not cover, such as:

  • Amounts considered to be under the deductible
  • Land
  • Pollution
  • Costs that are incurred due to building codes or ordinances (unless specifically included)
  • Back up of sewers (unless specifically included)
  • Flood
  • Earthquake
  • Earth movement

It is important to note that business owners insurance is not the same thing as professional liability coverage (such as errors and omissions), commercial auto insurance, workers’ compensation, or regular life and health insurance coverage.

What to look for in a business owners insurance policy?

When looking for a business owners insurance policy, there are some key criteria that you should consider. For example, you should first determine all of the possible risks that your company may face - and then make sure the business owners policy provides an ample amount of protection for these.

It is also important to ensure that the insurance company you choose to go with has a positive reputation for paying out its claims in a timely manner, as this can make a big difference in your company's future operation if a covered threat does occur.  

In addition, be sure that the broker you choose to work with is reputable and is well versed in business owners insurance coverage. Finding a good insurance advisor can be just as important as finding a good accountant or lawyer. That's where VANTREO makes the difference.

Why Choose VANTREO as Your Business Owners Insurance Advisor?

When working with VANTREO as your business owners insurance broker, you will have a team of experts by your side who will help you in choosing the coverage that is right for you. We serve you both online through our client service dashboard and with live expertise. So, contact us at (800) 967-6543 to see where your company may be vulnerable.


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