Types of Business Insurance Policies

• A Business Owner's/Small Business Insurance Policy (BOP): This type of business insurance policy is specifically designed for small businesses or sole proprietors. A BOP combines general liability and commercial property insurance to cover any property that your company owns, other than its vehicles.

• Commercial Auto Insurance: This coverage protects your company's vehicles and drivers.

• Commercial Umbrella Insurance: An umbrella policy provides additional liability coverage to your business if a claim has exhausted the liability limits on your business's commercial auto, general liability, professional liability, or workers' compensation policies.

• General Liability Insurance: This coverage is a type of business insurance policy that protects your business from bodily injury and property damage claims.

• Professional Liability Insurance: This type of business insurance policy protects you and your business from claims that result from professional negligence and errors.

• Workers' Compensation Insurance: This coverage provides compensation to an employee of your business for work-related injuries and illnesses that they may suffer while working for your business.

Business Owners'/Small Business Insurance

Your business needs to be covered for the liability that results from unexpected incidents. A business owner's policy (BOP policy) provides this liability coverage like a General Liability policy does, but it also covers the damage to any property that a small business may own, other than its vehicles, which is why it is referred to as a "package" policy. Your company may own a building, equipment, office furnishings, materials, and more. Suppose these things are damaged in a covered claim. In that case, you will be able to recover the value of the items for either their actual cash value or for the cost to replace them if you carry replacement cost coverage. Your insurance company may require that you specifically list certain high-value pieces of equipment on the policy. A BOP policy can also help you to recover business income that is lost after a covered claim. It is important to inform your insurance company of exactly the type of property your business owns so that they can provide you with the appropriate coverage to protect you and your business.

Commercial Auto Insurance Options

Commercial auto insurance provides coverage for company-owned vehicles and drivers. It helps protect your business from unexpected costs associated with accidents, theft, and damage to company vehicles. Commercial vehicle insurance is essential for businesses that use vehicles for work-related activities.

A commercial auto insurance policy provides bodily injury liability, property damage liability, and physical damage coverage (comprehensive and collision coverage) for your vehicles if you opt to purchase it. This type of policy can also provide other valuable coverages, Uninsured/Underinsured Motorist coverage, medical payments coverage, roadside assistance, and rental reimbursement coverage.

A valuable addition to a commercial auto policy is hired auto insurance coverage, which provides liability coverage to anyone using their own vehicle in conjunction with your business, or for vehicles that are not owned by the business itself. Separately, non-owned auto insurance coverage can provide liability coverage for vehicles that you, as the business owner, use in conjunction with the business, whether it is your personal vehicle or a rented vehicle.

Commercial Umbrella Insurance

If your business is sued after a general liability, commercial auto, professiona liability, or workers' compensation claim, the liability coverage that you have on these underlying policies may not be sufficient to cover the suit amount. For example, suppose you have a $1,000,000 liability limit on your commercial auto policy, but are sued for $2,000,000 after a serious accident. In that case, your commercial auto policy will only pay out the $1,000,000 limit that you have on the policy. If you purchase commercial umbrella insurance, which is sold in $1,000,000 layers, the umbrella policy will step in to cover the additional liability cost, including additional legal fees, up to the umbrella policy's limit. Having commercial umbrella insurance can provide the protection you need, ensuring that your business assets are not depleted to cover a lawsuit for which you did not have sufficient coverage. Commercial umbrella insurance is relatively inexpensive and a valuable insurance policy for any business to have.

General Liability Insurance

If your business does not own any property, you can purchase a general liability policy to protect your business from liability claims that may arise. A general liability policy provides coverage for bodily injury or property damage caused by you or your employees. General liability can provide other valuable coverages, including fire damage to your business's rented premises, advertising liability, product liability, and medical payment coverage. If you own a business, general liability coverage is an essential policy you should have to protect yourself and your business.

Professional Liability Insurance

Professional liability insurance provides business owners who provide professional services that require certain expertise, such as doctors, lawyers, accountants, bookkeepers, and more. This type of policy protects you when your business has been negligent in providing information or services. This includes claims of malpractice, misrepresentation, or mistakes that you may make when dealing with a patient or client. If you are a professional, this is an essential policy to carry, as your general liability insurance will not cover these sorts of claims.

Workers' Compensation Insurance

If your business employs workers, you need to carry workers' compensation coverage to protect them. Most states require any business that has employees to carry this type of insurance policy. Workers' compensation coverage will pay for claims that occur when your employees become ill or suffer from work-related injuries. The policy will pay the medical expenses associated with the illness or injury, and will also pay your sick or injured employee for part of their lost wages up to the stated coverage limit in the policy until they can return to work.

Getting a Business Insurance Quote

Getting a simple business insurance quote is easy and can be done in just a few clicks. Business owners can compare quotes from different insurance companies to find the best rate using a comparative rating website such as A-MAX Insurance or by consulting with an independent insurance agent who is licensed in the state in which the business is located. A business insurance quote that you obtain online can provide an estimate of the cost of a business insurance policy and help you determine which policy is right for your business. If you're unsure of what you need or have a more complicated business structure, it is important to speak with a licensed insurance agent. An agent can advise you on the right coverage to best protect you from unexpected claims and provide you with competitive pricing for the insurance products that your business needs. By shopping around for your business insurance, you can help your business save money and protect your personal and business assets.