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What Is a Business Owner’s Insurance Policy and Why You Need One

As a small or medium-sized business owner, a business owner’s insurance policy prepares you for the unexpected and helps your business stay afloat. You may ask yourself, "what is a business owner's insurance policy, and why do I need one?" Here we go.



What is a Business Owner’s Insurance Policy?

Also called a BOP, a business owner's insurance policy bundles all the essential policies you need as a business owner into a single policy. Instead of buying separate policies, you get all the protection you need in a single bundle at a cost lesser than the sum of all the individual policies.


A standard business owner's insurance policy includes general liability, business interruption, and property insurance. It provides liability coverage for bodily injuries and product-related claims and protects you against property damages.


Additional options cover crime, equipment breakdown, employment practices, professional liability, and more.


Why Do You Need Business Owner’s Insurance Policy?

Protects you against financial loss

Think about it; you could get sued by a customer after falling at your place of business.


Fire could also gut your building and destroy equipment and inventory. A business owner's insurance policy ensures you do not have to pay the cost of repair or replacement out of your own pocket.


Protects your customers

A business owner's insurance policy can pay for the medical costs of customers who sustain injuries. It can also cover associated legal costs.


Saves costs

If you buy policies separately, you'll pay more than you have to. That's because the total costs of separate policies are more expensive than a BOP that combines all the policies you need for your business, enabling you to save money.


Gives credibility

A BOP gives your business credibility. Your customers will have the rest of mind that you take your business seriously and that they'll be taken care of should they be involved in an accident at your workplace.


Protects you against lawsuits

Lawsuits are common in business. For example, a competitor can sue your company for libel, or a client can take you to court for a data breach. A BOP can help cover legal costs.



How Can I Purchase a Business Owner’s Insurance Policy?

Several insurance companies sell a business owner's insurance policy.


You can find the right policy that fits your business needs by getting quotes from each company and comparing the rates, coverage types, add-on options, and so on.


Or you can leave all the work to an independent insurance agency like us. We'll sit with you to understand your needs, search for the right policy, and walk you through the entire process. Request a quote today!

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