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The basic types of insurance
are available to protect your business:
property, liability and workers' compensation.
Workers' compensation insurance is required by
law in all 50 states. Although property and
liability insurance are not always mandatory, it
makes sense to protect all of your company
assets with property and liability insurance.
Business owner's policies
(BOPs) are insurance packages that provide both
property and liability coverage at one
affordable premium. These packaged policies are
available to most small and medium-size
companies and can be a good alternative to
purchasing separate policies for liability and
property insurance.
Large companies and businesses
that are considered high risk usually don't meet
the criteria for a BOP. The criteria for BOP
eligibility include the size of the premises,
the required limits of liability, the type of
business and the extent of offsite activity.
Premiums for BOP policies are based on similar
factors, including business location, financial
stability, building construction, and security
features and fire hazards.
What Does a BOP Cover?
A BOP includes property
protection for an office building and its
contents as well as other people's property
brought into the office building. BOPs cover
standard perils, including fire and theft,
although certain exclusions apply, such as
damage caused by floods and earthquakes.
Under a
BOP, a business selects the amount of liability
coverage it needs based on its assets. Liability
coverage pays for the cost of defending the
business in a lawsuit and pays damages if the
business is sued for injury or property damage.
The liability policy also pays the medical
expenses of those injured, other than employees,
as a result of business operations.
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A BOP provides coverage for both
business interruption and replacement costs if an
emergency disrupts or destroys the business.
Business interruption insurance not only compensates
for lost income and the expenses incurred when a
company is forced to vacate its premises due to
disaster-related damage, but it also covers
operating expenses, such as payroll, which continue
even when business activities have ceased.
Replacement-cost coverage pays to replace damaged or
stolen property, equipment and inventory without
deducting for depreciation.
In addition to the basic BOP
policy, businesses may purchase add-on coverage
based on the particular risks associated with the
company. For example, a dry cleaner might purchase
additional coverage for mechanical breakdown, which
would cover the machinery the business relies on. A
retailer with numerous employees might carry
coverage for employee dishonesty, which covers loss
of business property due to embezzlement, fraud or
another criminal act.
When purchasing business insurance
it's important to be sure that your company is
neither over insured nor underinsured. List all
company assets — including property, equipment and
inventory — to help you decide the amount of
insurance you need. An insurance agent or broker can
help you identify risks and determine the type of
coverage needed in order to fully
Lines of Business
Manufacturers, Wholesalers/Distributors, Retailers, Commercial Real Estate, Service Businesses, Information Technology Businesses, Professionals (Including all Medical fields, accountants, clerical offices, etc.), Institutions Media/Entertainment (Music, Movie/TV Production, Events)
Insurance Companies
* A Rated Insurance Companies
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