WD Royal Insurance: Your Trusted Independent Insurance Agency For Business Owner's Policy

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 A business owner's policy (BOP) is a package of insurance that bundles general liability, commercial property, and business interruption coverage into a single policy. This makes it a cost-effective and convenient option for many small and medium-sized businesses.

What a business owner's policy covers

• Commercial property insurance covers a business's physical assets, including its building (whether owned or leased), inventory, equipment, furniture, and tools, against damage or loss from covered events like fire, theft, or vandalism.
• General liability insurance protects your business from third-party claims of bodily injury, property damage, and personal or advertising injury, such as libel and slander. For example, it can cover medical and legal fees if a customer slips and falls at your business.
• Business interruption insurance (also known as business income coverage) replaces lost income and covers operating expenses like payroll and rent if a covered event forces your business to temporarily shut down.
• Equipment breakdown coverage may also be included, which helps pay for the repair or replacement of vital business equipment after mechanical or electrical failure.

Common exclusions

A standard BOP does not cover every risk. Common exclusions include:

• Cyber liability: Does not cover financial losses due to cyberattacks or data breaches unless added as an endorsement.
• Workers' compensation: A separate policy is required to cover employees' medical expenses and lost wages from work-related injuries or illnesses.
• Commercial auto insurance: A BOP does not cover accidents involving vehicles used for business purposes. This requires a separate policy.
• Professional liability (E&O): A separate errors and omissions (E&O) policy is needed to cover claims of negligence or mistakes related to your professional services.
• Floods and earthquakes: Damage from these events is typically excluded and requires a separate policy or endorsement.

 Do you need a business owner's policy?

A BOP can be a good fit for your business if you:

• Have a physical location. This applies whether you own, rent, or operate a business from your home.
• Have valuable physical assets. You need to protect equipment, inventory, or furniture from damage or theft.
• Serve customers or the public. Interacting with clients or the public increases your risk of liability claims like slip-and-fall injuries.
• Operate in a low-risk industry. Insurers typically offer BOPs to small or medium-sized businesses in lower-risk fields, like retailers, offices, and restaurants.

 How to get business owner's insurance

1. Assess your risks. Determine the types of accidents, natural disasters, and lawsuits that could affect your business.
2. Compare quotes. Shop around and compare options from different providers. You can purchase a BOP through an independent insurance agent, a captive agent (representing a single company), or directly online.
3. Provide your information. Be ready to share details about your business's annual revenue, number of employees, square footage, and previous claims.
4. Review and customize. Work with an agent to customize your policy with any necessary endorsements, such as coverage for cyberattacks or professional liability.
5. Re-evaluate annually. As your business grows and changes, reassess your coverage needs to ensure you are properly protected.