Small Business Insurance

In general, insurance transfers an affordable risk to cover the unaffordable risk at the cost of premium. And so insurance is not only important for you, but it is important for your business also.

Business owner's policy package is made for the small and medium-sized business owner's. The insurance companies are offering policies combining all the major property and liability risks in a single package. For the larger companies, insurance carriers offer the commercial packages so that they can avoid the specific associated risks.

Prime forms of coverages are as follow:

Business property insurance: Property insurance provides the coverage to protect you from a variety of losses. The buildings, the contents of the buildings, or structures and the completed additions, which are listed on the declaration page of a commercial policy is covered.

The policy would cover the company buildings. In the case of leased premises the landlord will provide this coverage. Business property will include chairs, tables, fixtures, machinery and other equipments.

You should fully insure the value of your buildings. Otherwise you would be subject to a monetary penalty. This penalty is known as ‘coinsurance’. It is important to understand the coinsurance clause of your commercial property policy.

There are two forms of this insurance. Standard and the Special form. The special form of property insurance provides more comprehensive coverage.

Liability insurance: It is designed to protect your company’s legal responsibilities for the harm it causes to others. It may happen that due to the defective products or wrong installation cause property damage or bodily injury to others.

Business interruption insurance: The loss of income resulting from calamities that interrupts the operation of business. If written then a policy would also include loss of income resulting from the breakdowns or from other hazards that would temporarily close your business down.

Whether a property loss is covered or not depends on the policy language, endorsements and exclusions. There are two types of losses. Specific perils and the Open perils. The examples of specific perils are fire, explosion, windstorm, vandalism, etc. Open perils provides the coverage for all losses unless they are excluded. As open perils provides more comprehensive protection it costs more than that of specific perils.

It is necessary to mention that separate policies are required to cover professional services, worker's compensation, vehicles and the employees as BOPs do not provide the coverages.

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