Reasons Why You Need a Business Insurance
Business insurance, also known as commercial insurance, helps you to secure your company’s income, property, and assets against loses. BOP (business owners’ policy) guarantees you three types of coverage to help you protect your business. These are: the business interruption coverage, general liability coverage, and the business property coverage. Nonetheless, you can buy extra coverage to customize your insurance plan based on your specific needs and operation.
What the Business Insurance Covers
The is mainly for business owners. The BOP helps you protect your business against covered perils and financial loses. Usually, this insurance plan will cover your business against risks like fire, lightning, falling objects, wind, and theft.
Nonetheless, before engaging a business policy, it’s vital that you understand your plan carefully to know the particular hazards covered by your insurance provider.
General Liability Coverage
The insurance cover works with standard business policies that have the general liability policy that will cover for injuries resulting from negligence. The general liability policy will help you pay for medical expenses and legal costs in case your business gets sued due to an accident that happened on your business premises.
However, remember that the general liability insurance is subject to a limited coverage. As such, if the injured person’s medical expenses exceed your coverage limitation, you might be forced to cough the remaining amount on your own.
Business Property Coverage
Business property insurance in a business owner’s policy helps guard your business’ building and its content against protected risks. For instance, in the case that fire ruins your premises, your property insurance helps you to pay for repairs. Note that, the business property coverage has limits and is deductible. The limit is the maximum amount that your insurance provider will compensate for your covered claim. You can decide your property coverage limit based on the estimated cost to replace, repair or rebuild your business’s property. The deductible amount, on the other hand, is the amount you pay on your own towards the covered claim.
Business Interruption Coverage Benefits
Business interruption coverage is also known as the business income coverage and is also a component of the business owners’ policy. This type of coverage helps recover increased expenditures and lost income in the case that your business is affected by a covered hazard. For instance, when your office becomes uninhabitable due to a fire, the business interruption coverage helps you to find new working space during the repairs.