Importance of Small Business Insurance for New Business Startups
Commonly known as commercial insurance, business insurance is a highly regarded business protection protocol for corporations. Generally designed to cover the business, its employees, and ownership, it is super essential for small businesses. It helps protect the business assets, property, and income against potential threats.
According to Insurance Information Institute, a business owner’s policy or BOP is the most common insurance policy undertaken by small businesses. Fundamentally, it includes three basic types of coverage to help protect a small business:
Business Property Coverage
The business owner’s policy provides business property coverage to help protect your business infrastructure and its content against covered hazards and accidents. For example, your new grill restaurant startup catches on fire. A BOP would help you replace and repair the damage without your business suffering a significant financial blow.
General Liability Coverage
The BOP usually includes general liability coverage, also known as general commercial liability. It protects the business owner if found liable to pay for employees of the business. For example, the expenses may include:
Medical bills due to an injury caused in work premises
Legal costs if a case is taken to court over an accident caused at the workplace.
Business Interruption Coverage
Business interruption coverage or business income coverage is a typical part of the BOP. It helps in replacing lost income and added expenses of any business that suffered from unprecedented consequences. Such coverage is great when natural disasters or pandemics make the workplace inhabitable and interrupt the general workflow.
If you are a small business owner, it’s about time you get small business insurance to strengthen the livelihood of your business’s smooth running. Reliable Insurance can help you add additional insurance coverage to customize your general commercial insurance policy package based on your specific operational needs.