Business

Basics of Small Business Insurance

The most common policy for small businesses is the Business Owners Policy (BOP). This policy is a package for multiple insurance coverages that includes property and liability risk with other additional coverages. BOP is a policy language that includes interruption insurance. The interruption insurance covers a business for the loss of income due to a disaster. This business income insurance will cover additional expenses if the disaster was major to where the business had to move to a temporary location. There are additional coverages that are available to add to BOP. For instance, if something were to happen to a business sign that is outside the building than it is not covered unless there is an additional coverage added to insure the sign. Many business’ today rely on electronic commerce, so there is a coverage for the lost expenses and income incase something happened to the computer. For instance, if there is a computer virus or even if the computer was hacked or crashed than it would be covered. Not all businesses are eligible to apply for a BOP policy. The requirement for the business is it has to be small or medium in size in regards to the premises. Also, other factors include the type of business, liability limits, and offsite action. There are premiums included with BOP based on location, construction of the building, stability of finances, and security features that include fire and flood prevention. First Cash Advance – Personal Cash Advance is your one-stop shop for cash advances. We offer an easy 2 minute application with instant approval and no credit check or faxing required.

The following are coverages small businesses need to purchase:

• Property Insurance- Damaged or lost property
• Liability Insurance- Pays for damages and medical bills in a lawsuit
• Business Auto Insurance- Covers company vehicles and third party damages
• Workers Compensation- Pays for lost wages and medical care due to injury

Other coverages for small businesses to consider:

• Employment Practices Liability Insurance- Violation of civil or legal employee rights
• Directors and Officers Liability Insurance- Covers directors and officers at nonprofit organizations from lawsuits
• Professional Liability/Errors and Omissions Insurance- Provides recommendations, advice, and physical care to cover injuries and legal costs
• Umbrella Policies- Coverage that is over and above other liability insurance
• Key Employee Insurance- Compensates death or disability of an employee