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What Insurance Do I Need For My Small Business?

small business insurance

Business insurance is not one size fits all due to the fact that every business is different. There are many different types of coverage available that your business may or may not need. The type of business, size of business and its operations all play a role in determining insurance. Towns like Paducah, Kentucky are focused on growth and development in their downtown area. Entrepreneurs are popping up every day but without a clue as to their insurance needs.

A Business Owners Policy (BOP) is an insurance policy built for small businesses. A BOP bundles commercial property and liability into one policy much like a homeowner’s policy does. BOPs include packaged additional coverages that are tailored to the needs of a small business and make up the basis of the policy.

BOP Coverage

The BOP property portion covers the insured structures and business personal property. The liability portion provides coverage for the insured’s legal responsibility for harm it causes to others. This harm could be as a result of its product, services or general facilities maintenance. Some of the additional coverages packaged in a BOP are coverages like Business Interruption Insurance. This covers the loss of business income when the insured’s business operations have to be suspended due to a loss. Extra Expense is another additional coverage for a BOP.  It provides reimbursement for additional costs that are incurred after a covered loss to keep the business running and avoid suspension. We only highlighted a few of the coverages a BOP provides because of the vast differences between types of business and insurance carriers

You may still question on whether or not a BOP is right for you because you are unsure of the qualifications. Talking with a qualified agent can help you determine if a Business Owners Policy is a viable option for your business. Your agent will also advise you on additional coverages you need that are not part of a BOP.  BOPs simplify your insurance. However, this doesn’t mean it is the only insurance policy you need for your business. BOPS do not include all coverage a small business owner might need such as commercial auto, professional liability and workers compensation.


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