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Low Cost Business Insurance in Clarkesville, GA
Small Business, Big Insurance Implications
For the more than half million U.S. entrepreneurs who start a business each month, making the right insurance moves can mean the difference between a first-anniversary celebration and an inaugural-year flop. Whether you have one or a few hundred employees, sell products or offer services, or command your operation from inside or outside your home, your insurance considerations as a small business owner are quite different from those of an individual consumer.
Five Insurance Questions to Ask Before Starting a Business
A business owner’s policy – sometimes called a BOP – is a “package” product that typically includes property, business interruption/continuation and liability insurance. For many small businesses, purchasing a BOP can be a less costly option than buying individual policies. Many insurers also customize BOPs for specific types of businesses.
A home-based business or a company with only a few employees may start out with a BOP and then expand coverage as the company grows. However, a BOP typically does not include commercial auto insurance, workers’ compensation, health or disability insurance or liability insurance for claims of wrongful professional practices.
Not all businesses qualify for a BOP. For example, a factory or a jewelry store, because of the unique risks, usually require more customized coverage than what’s included in a standard BOP.
Since a BOP is prepackaged, there is only one policy to review and it can be more cost effective than purchasing separate policies. Additional coverage can be added in the form of endorsements or riders.
Since a BOP insurance policy is specifically designed for small and medium-sized businesses, the type of business can influence eligibility. Normally, companies with 100 employees or fewer and revenues of up to about $5 million or less are candidates for a BOP. Some types of businesses, such as restaurants, may be ineligible for a BOP because of the specific risks inherent in the business and may need to consider buying the individual coverages separately.
Combining three insurance policies into one package
In a single, convenient package, a BOP provides the core insurance that most small businesses need, including:
Property insurance—Protection for your building or office space, as well as property owned by your business, such as equipment and inventory.
Liability insurance—Coverage for costs that arise if someone is injured at your business or by using your products or services.
Business interruption insurance—Also known as Business Income insurance, this coverage replaces lost revenues in the event that your business has to shut down due to fire, wind damage or other covered losses.
You can tailor a BOP to meet your needs
It’s important to understand that a BOP doesn’t cover all risks associated with running a small business and the coverage limits are usually lower. If you have employees, you may be required to carry workers compensation insurance, depending on your state. If you have a business-owned vehicle, you’ll need coverage beyond your personal car insurance. You might also consider insurance for relatively new risks such as computer system break-in or business identity theft.
There are unique risks associated with your small business; an insurance professional can help you find the coverages that are right for you. Here are some other types of insurance to explore and ask about:
You can increase the protection provided by your BOP and other business insurance policies by adding an excess liability or umbrella insurance policy. This type of supplemental policy boosts your coverage beyond the limits of your primary insurance policies. Depending on the policy, your umbrella coverage is designed to broaden and increase coverage, “filling in the gaps” left by other types of liability insurance by covering additional areas of risk and even reimbursing you for deductibles. Your insurance professional can advise you about combining an umbrella policy with a BOP or other business insurance.
It may sound like a dance craze from the 1950s, but a BOP—a Business Owners Policy—can protect your small business against today’s most common risks. Fire, burglary, liability and business interruption losses are all covered under a BOP. We invite you to “Bop” on over to our agency for a no-obligation review of your business insurance needs.
Small Business Insurance Tips and Considerations
Insurance premiums are based on risk. Small business owners who take steps to minimize risk in the workplace can help keep employees and customers safe, and save money. Consider the following:
Commercial property insurance is like having a superhero for your business, ready to swoop in and save the day when disaster strikes. It's the ultimate safety net that helps protect your hard-earned assets by covering all or part of the costs when a covered loss occurs. Whether you own, rent, or lease your business building, property insurance can help keep your doors open even during tough times.
But not all commercial property insurance policies are created equal. While basic policies may cover things like fire damage, most savvy business owners opt for a more comprehensive plan, known as a Businessowners Policy or BOP. A BOP provides coverage for your business' buildings, including installed fixtures, machines, and equipment, as well as outdoor fixtures. But that's not all - it also covers the contents of your business, such as inventory, machinery, and computers.
But wait, there's more! A BOP also covers items owned by others that are in your care, custody, and control, as long as your business is legally liable for that property. However, there are some causes of loss that are not covered by commercial property insurance or a BOP. Don't worry though, you can still add them by endorsement. Some of these include employee dishonesty, steam boiler breakdown, flood, earthquake, and crime.
It's important to note that not all of your business property is covered with a commercial property policy. You may need additional coverage for commercial autos, outdoor fences, and signs not attached to your building. That's where our agency comes in - we can review your business needs and make sure you have the necessary coverage for your unique business needs.
In addition to protecting your physical assets, it's also important to discuss your disaster recovery plans with our agent. This ensures that you have coverage for lost income and extra expenses that result from recovering from a covered loss. So, don't wait until disaster strikes - get commercial property insurance and give your business the superhero protection it deserves!