What do small business owners want from insurance companies?

If your product causes damage or injury to a third party or your company is facing a product-related lawsuit, defective product liability insurance can help ensure your safety and security. Only small and medium businesses that meet certain criteria are eligible for a BOP. Factors that insurers consider include the size of facilities, the limits of liability required, the type of business and the scope of off-site activity. BOP policy premiums are based on those factors plus company location, financial stability, building construction, safety features and fire hazards.

Commercial property insurance covers a range of commercial items, such as computers and workstations, desks and chairs, business records, business inventory and supplies. Commercial property insurance can also cover a company's offices and commercial building. Commercial property insurance is also called commercial property insurance. General liability insurance is essential for business owners, but only 36% of business owners surveyed have this coverage or plan to purchase it in the next 12 months.

And 21% of small business owners said they have personal liability insurance (also called error and omission insurance) or plan to buy it next year. Without small business insurance, you would have to pay the legal costs of lawsuits and find a way to pay for damage to your business property. General liability insurance and commercial property insurance are good starting points. The commercial car is important if you have cars, trucks or vans that you use for business.

A Business Owners Policy (BOP) is an affordable way to get essential coverage for a small business. General liability insurance, commercial property insurance and business interruption insurance are included in a BOP. If a company depends on e-commerce, the owner can add coverage to cover lost revenues and additional expenses in the event that the company's ability to conduct e-commerce is slowed or disrupted due to a computer virus or a hacker. Cincinnati Insurance sells its coverage through independent local agents who will adapt coverage to a company's needs.

Insurers often combine several insurance coverages into a package that is sold as a single contract. Life or disability income insurance can compensate a company when certain key employees die or become disabled. Instead, Dokovna said, it's better to make strategic decisions about what insurance policies your company needs and which it doesn't. General liability insurance pays for legal costs, such as hiring an attorney and any judgment against you and your company.

Liability insurance pays for damages for which the company is found responsible, up to the limits of the policy, as well as attorneys' fees and other legal defense expenses. And with the increase in computer piracy, cyber liability insurance is important to pay for recovery costs in the event that your company's computer network is attacked by thieves. Liability insurance for directors and officers protects directors and officers of corporations or non-profit organizations if there is a lawsuit that states that they managed the company or organization without due regard to the rights of others. An insurance broker, rather than an agent who works for a specific provider, may be a good option for business owners who want to find coverage from different providers that fits all their needs, Kear said.

The BOP combines coverage for all major property and liability insurance risks, as well as many additional coverages in a single policy package suitable for most small businesses. Property insurance covers not only a building or structure, but also what insurers refer to as personal property, that is, office furniture, inventory, raw materials, machinery, computers and other items vital to a company's operations. .