Arnold, Bruce & Doerfler Insurance Blog
A business owner’s policy is a type of bundle offered by insurance companies that is generally intended for small to medium businesses. It serves as an all-in-one package policy for basic coverages required by a business owner, and most of the time, at a lower price than the total cost of each content. However, there are coverage limits and particular considerations that you should consider to ensure you are getting what you need.
Business Owner Policy Coverage
Company Property Insurance
Generally, a standard property insurance or peril coverage portion of the business owner policy only covers damages caused by those specifically listed in the policy such as fire and explosion damage, wind damage, smoke damage, and vandalism. However, there is an option for superior coverage, which is more comprehensive with the risks and harms. Property insurance only covers owned or rented buildings and fixtures, and any business-owned or third party held items at specified proximity of the business premises (e.g., within 100 feet).
Business Interruption Insurance
Business interruption insurance covers most losses in income caused by unfortunate events that disrupt business operations. This may also include extra expenses incurred when operating at a temporary location.
Company Liability Protection
Liability protection covers the legal responsibility for the damages the company and the employees may inflict on others due to normal business operations. This includes bodily injuries to others or property damages from errors in services, faulty installations, or defective products.
Things to Consider
Business owner policies usually do not cover professional liability, company car insurance, employee compensation, health insurance, etc. These are needed by most businesses and would require separate policies. Business owners may also opt to arrange for particular coverage components such as crime insurance, vehicle insurance, and flood insurance. There are also varying requirements set by insurance providers for companies to become eligible in their business owner policies regarding the location, revenue, and type of business.
A business owner policy is an excellent way for small to medium businesses to obtain basic insurance coverage. However, do not make the mistake of readily assuming that it has comprehensive coverage. Ask your insurance provider first for details on eligibility, standard policy coverage, and add specific coverage for your company.
At Arnold, Bruce & Doerfler Insurance, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (503) 222-1951. Get your free quote today by CLICKING HERE.