Owning a small business, whether inherited or launched out of your garage, is an accomplishment to be proud of. If a small business has been in your family for a while, chances are it’s already protected by some type of commercial insurance. But if you’re just starting out, you may not be familiar with the protection commercial insurance can offer. Regardless of your situation, it’s smart to review your options with an insurance expert who can help you find the right coverages for your business type.

Small businesses can vary greatly by the type of business conducted. For example, a hairstylist would probably have different risks than a financial advisor or florist would have. Although there are different coverages available based on business type, a standard policy that nearly all small business owners can benefit from is a BOP, or business owners policy.

What is a Business Owners Policy (BOP)?

Small business owners have enough to juggle on a day-to-day basis, which is why many insurance companies offer package commercial insurance policies. A BOP offers protection from all major property and liability risks, in a single convenient package.¹ Policies like BOPs can provide the essential insurance many small businesses need including:

1) Protection for your business’ physical location

Where do you operate your small business from? Do you rent a storefront or office suite? Do you operate your business out of your home? A BOP can offer protection for your office space or building if an event like vandalism or a fire were to occur.² Although these are the types of things we hope will never happen, it’s smart to be prepared in case they do.

2) Coverage for your business’ equipment

In addition to physical space, a BOP may cover property owned by your business, like equipment and inventory, in case an unforeseen event leaves them damaged or irreparable.² It’s important to note that business insurance typically won’t cover wear and tear on equipment, only from damages caused by a covered event.

3) Protection in case someone gets hurt on your premises

If a customer were to slip and fall somewhere on your business’ premises, a BOP could help pay for medical bills or legal obligations your business incurs, to a certain extent.² An unprecedented injury could end up costing your business in the long run, without proper liability protection in place.

4) Coverage if someone gets hurt by your business’ products

From a burnt mouth caused by a hot coffee to a deep cut inflicted by a faulty design, injuries from products happen often. You may be liable to pay for medical bills or other damages, which is where a BOP comes in handy. The more product you sell, the more likely someone may have a claim they are injured by it, so make sure your business is protected, just in case the unexpected occurs.

5) Protection from unavoidable business interruptions

Last but certainly not least, business interruption insurance can prove highly valuable if your business must shut down for a certain period. Now having lived through a pandemic, it’s easy to see how this type of coverage in a BOP could be necessary for many business types. However, events like pandemics may require special emergency coverages. Your insurance agent can answer any questions about special insurance coverages.  

Who is Answer Financial?

If you’re reading this article, chances are you might be interested in finding the right coverage for your small business. Answer Financial employs licensed agents who specialize in small business coverage and are happy to talk you through your policy needs.

Answer Financial is one of the largest personal lines insurance agencies in the United States. We work with 40+ of the nation’s top-rated insurance companies to help customers save an average of $565* a year on insurance, from auto and home insurance to small business, motorcycle, flood, RV and more.

To quickly compare rates and customize coverages from multiple insurance companies, give us a call at (800) 258-5101. Answer Financial can help you compare, buy and save the smart way on commercial insurance for your small business.