If you are in business you need to make an informed choice regarding your insurance needs. Moreover, if you're an entrepreneur, you need protection from all sorts of risks. An ideal policy would cover property, liability, business errors, and worker's compensation. In addition, it should be able to cover your company automobile.
Is there such an umbrella policy that covers the business needs of an entrepreneur? In other words, a sort of homeowner's insurance for a business? Although this ideal policy does not exist, there is something that is pretty close. As you can imagine, the insurance industry has looked into this issue and they have come up with an insurance that almost fits this need.
This all purpose insurance is called a business owner's policy often known by the acronym BOP. This idea came about in the 1970s and it has been a popular choice for entrepreneurs who run small to medium business enterprises. As a standard package, this type of insurance costs less than buying each of the coverage you need in separate policies. In addition, unlike a collection of small policies, this standard package does not have overlapping coverage.
It is simplified, comprehensive, and not redundant. This makes it immensely appealing to business owners. Moreover, since this is an efficient package, it is offered at a lower premium by insurance companies. With BOP you do get property insurance that covers your buildings, your equipment, and your inventory.
Should your business experience losses that might cause you to shut down your enterprise or reduce the hours of productivity, BOP offers business interruption insurance. This will cover you for a year. It will help offset the profits you lose and it will continue to pay your expenses. Should your business have an employee who does damage or a product that causes damage to other people and their property, BOP offers casualty or liability protection.
Should your business have a burglary break in, some other type of robbery, like an employee embezzling funds or stealing, or any other form of willful destruction, BOP offers crime insurance.
If your business should have a customer or a visitor who trips, falls, or in some other way hurts themselves, these accidents are covered by liability insurance. In addition, liability insurance will also cover your business should a customer buy a product from you that damages their property. What's more, liability insurance will cover you should you be accused of offenses like copyright theft, privacy invasion, or slander. Other things that are covered are business income, extra expenses, and rented or borrowed vehicle coverage.
However, BOP is not a complete package, as it can't cover everything. While it can cover, property, liability, and some other insurance necessary for business, it can't also cover the complexity of worker's compensation and automobile insurance. In addition, flood insurance, earthquake insurance, owned vehicle insurance, and special liabilities are not included. These other types of insurance needs will have to be purchased separately, as including them would do away with the low premiums.
Author Resource:-
Nick Messe, the author, is president of Lead Frog LLC. In Easton and Salisbury Maryland Kiefer & Colbourne Insurance provide high quality Easton MD homeowners insurance to protect and manage the risks of life. Call 1-800-649-3114 for a free homeowners insurance quote.
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