Business insurance protects your company against the financial impact of bodily injury or property damage claims related to daily operations. In some states, this coverage is legally mandated; other policies can help enhance credibility among potential clients or customers.
If your company relies heavily on one key employee – say a chemist working on an innovative chemical compound – then a key person policy may be warranted.
Business Owner’s Policy (BOP)
Business Owner’s Policies (BOPs) are among the most frequently purchased forms of coverage by small businesses, as it combines general liability and commercial property/business property insurance into one cost-effective policy. BOPs allow smaller firms to protect themselves financially against unexpected disasters that may strike and provide valuable peace of mind against costly consequences of disasters that might arise.
General liability coverage provides businesses with protection from claims alleging bodily or property injury, including libel and slander, or advertising injury coverage – such as when someone alleges you’ve published something harmful about them in a newspaper or online post.
A BOP covers your company’s buildings, furniture and equipment against loss or damage from theft or fire; its commercial property coverage also helps cover repair or replacement costs if any items have been stolen or destroyed during an insured event like that of fire. Furthermore, this coverage can extend to hired and non owned auto coverage which provides protection when using rental vehicles or employee cars for business use.
Companies with 100 employees or fewer and revenues under $5 million typically qualify for business owners policies (BOP). However, certain industries may carry greater risks that would make their businesses ineligible for BOP coverage.
BOPs offer businesses many advantages as they provide multiple insurance policies in one comprehensive package that can save money while meeting any lender or landlord requirements for coverage.
BOPs also often include workers’ compensation insurance and business interruption coverage to provide protection should something like a natural disaster force the business to close; such policies could cover ongoing expenses like payroll or rent should revenue not come in from outside sources.
Note that a BOP does not usually cover threats such as terrorism or environmental hazards such as flooding and earthquakes; for your own protection, consider purchasing an endorsement or separate policy to provide this extra level of coverage.
Commercial General Liability (CGL)
CGL insurance, along with workers’ compensation and commercial auto policies, is one of the three essential policies any business needs to protect itself financially from an array of risks. It protects companies against third-party claims for bodily injury, property damage and personal or advertising injury (slander and false advertising). Like other types of commercial insurance policies, it usually covers legal defense costs as well as settlements or judgments up to its limit of coverage.
Although CGL coverage varies depending on insurers and policies, its scope typically encompasses premises/operations coverage to compensate for bodily injuries or property damages caused by operations at a company’s physical premises, and products/completed work coverage which pays out when someone sustains harm from completed products, services or completed works provided by it away from its physical locations. It often also includes umbrella coverage which provides extra limits beyond a policy’s dollar limits in any one claim.
Note, however, that CGL policies do not cover professional errors or omissions made when providing business services; such coverage should be obtained through separate Professional Liability policies in addition to CGL.
CGL policies may exclusion losses caused by the release or dispersal of pollutants; while this issue does not typically arise for most businesses, all should give this issue serious consideration before purchasing a CGL policy.
CGL insurance policies can help a business gain credibility by showing it is prepared for unexpected incidents that could harm its operations and provide peace of mind so the organization can focus on daily tasks without worrying about potential liabilities.
Small businesses may find the cost of CGL policies very reasonable when purchased as part of an all-encompassing Business Owners Policy (BOP), which offers comprehensive protection. As this coverage should meet their needs perfectly. At Apollo Insurance Services we offer cost-effective yet customizable CGL policies with the option for adding professional liability policies as needed.
Commercial Auto Insurance
Commercial auto policies provide insurance protection for vehicles owned and used for business purposes by a business, including cars, trucks, vans or trailers. Such policies usually include liability coverage as well as uninsured/underinsured motorists coverage (also known as UIM coverage) and medical payments coverage (also referred to as PIP coverage). Their exact details depend on which vehicles your company utilizes as well as how and who will drive them – the insurance agent will ask questions about who may drive each one as well as if any employees may drive them as cargo is hauled between locations.
Coverage like this is essential for businesses of any size as it provides financial protection from potential financial loss due to auto accidents or any other incident affecting your vehicle fleet. While individual auto policies may provide some degree of coverage, these are usually insufficient when applied to businesses of all sizes as most personal policies exclude certain business uses and vehicle usage scenarios.
Have the appropriate business insurance in place can protect against costly lawsuits, repair bills and lost income. But knowing which type is necessary can sometimes be confusing – that’s why it’s essential to review your policies regularly with your agent to ensure you have coverages most critical for your business.
Knowing the various types of coverage available is also beneficial. Knowing exactly what coverages you require can save time and money by only researching and comparing policies tailored to fit your unique situation, especially as your business changes or expands. Contact one of our professional insurance agents to discuss your unique requirements and find a policy suitable to them!
Business Interruption Insurance
Business Interruption Insurance covers your revenue loss during any forced shutdown of your company and reimburses for relocation costs, making this coverage essential for businesses that manufacture their own products or have significant inventories.
While other types of insurance coverage such as commercial property and auto provide you with coverage to replace or repair damaged goods and property, they don’t provide compensation for lost income or operating expenses incurred as a result of them being damaged or destroyed. That is why it is crucial to include business interruption coverage as part of your commercial package of policies.
Contrary to other types of insurance that impose dollar-based deductibles, business interruption policies offer “time deductibles”, which measure how long your company lost revenue after damage occurred. This period could range anywhere between 72 hours and 12 months. Furthermore, most policies offer restoration periods which begin 30 days post-repair of property and can extend for an entire year.
Business interruption coverage is usually included as part of a business owner’s policy or sold separately and the price can differ depending on factors like industry, location and risk associated with an incident being insured against.
A business interruption policy may include additional benefits, including contingent business interruption coverage and civil authority coverage. The former provides protection in case of interruption to supplier operations that your firm relies on – such as fire preventing food delivery. Civil authority coverage helps your firm recover from government-mandated closures such as during a coronavirus pandemic.
Extra expense coverage, which pays for expenses incurred due to a covered peril during a shutdown such as renting equipment or temporary space, advertising your temporary new location, and hiring cleaning services are among other costs covered by this type of policy.
