WEDNESDAY, MARCH 25, 2020
 Every business, no matter what industry or size, needs some type of business insurance. Businesses are huge investments that often take years and thousands of dollars to start, and it’s crucial to protect that investment with the appropriate insurance. The type and limits of insurance a business may need depends on various factors, however.
Size of Your Business
The size of your business decides the limits of coverage you need and qualify for. Only smaller businesses qualify for a business owners policy, for example. A business owners policy (BOP) combines certain coverages, including
- General Liability: General liability insurance covers claims concerning accidents and non-professional negligent acts. If a customer falls and hurts themselves in your store, this coverage will help with the customer’s medical expenses as well as the business’ legal expenses, should the customer decide to sue.
- Property: Property coverage covers the physical property owned by the business, including the location and its contents. It covers against damage or loss due to fire, smoke, lightning, theft, vandalism and more.
- Business Interruption Insurance: Business interruption insurance steps in if a disaster renders the business inoperable. This insurance coverage compensates for income lost while business operations are put on hold.
This type of policy can be adjusted for smaller businesses. “Small business” can mean multiple things. In some industries, a business is small with 100 employees or less. Other industries with 1,000 employees can also be considered a small business. It also depends on how much revenue your business brings in each year.
Industry
Certain industries not only determine what type of policies your business qualifies for, but also the amount of coverage. Some industries face larger liability risks than others while others may need more property coverage. Industries such as medicine, health and law face high limits of professional liability risks while industries like food, dining and retail face more general liability risks.
Consider the unique risks your business faces. A BOP can be adjusted to include more coverages depending on your business’ needs. Larger businesses may look for a commercial package policy (CPP). This policy provides the same coverage as a BOP but is geared for larger businesses in higher-risk industries. It also allows more flexibility with coverage limits.
Location
Some locations face more environmental threats than others. If your business is in an area at high risk for floods or earthquakes, you may need to add coverage to your property insurance.
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