Business Insurance: FAQ

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    Business Insurance Questions

    Can I Get a Policy that Combines Different Types of Business Insurance?

    Yes, you can. A business owner’s policy (BOP) is one of the options which typically includes property, casualty, liability, and business interruption coverage. It has less expensive premiums while including a package of various policies, making it very cost effective for small and medium-sized businesses.

    How is general liability different from business owners policy (BOP)?

    The main difference between these two policies is that the first one provides legal defense and business insurance protection against claims as loss of income, slander or third party property damage while the second covers both liability and property losses. Meanwhile, BOP is a package of business insurance policies already including general liability and several others. It is designed to provide coverage for the specific class of business needs; therefore, before purchasing it, it is better to talk to your insurance agent and make sure it fits your business.

    What Is a Commercial Umbrella Insurance Policy?

    Commercial Umbrella Insurance, also known as Excess Liability Insurance, provides additional coverage to businesses when claims exceed the limits of their ongoing policy. Typically, this insurance policy can provide $1 million of additional coverage. As for the cost of commercial umbrella insurance, it can vary based on several factors, but usually small business can purchase coverage for $500 to $1,500 per year.

    Do I Need Workers’ Compensation Insurance?

    In most states, Workers’ Comp Insurance is mandatory for businesses. If you’re a business owner or planning to open a business in the future, then you are required to buy workers compensation insurance. This insurance will protect you, and your workers from injuries and illnesses resulted while being in the workplace, including the payments for medical treatment, replacement income, compensation for any permanent injuries or disabilities and much more.

    What is professional indemnity insurance?

    Professional indemnity insurance is a type of business insurance, designed for businesses or professionals who provide advice or services to their clients. It protects businesses against legal claims and costs by third parties who may sue them for financial damages caused by their actions, omissions or professional duties. This coverage is not mandatory; however, if you own a business that deals with management consultants, business consultants and IT contractors then you will almost certainly need PI insurance.

    What is business interruption insurance?

    Business interruption insurance is a type of business insurance that compensates you for lost income in case your company interrupts the operations and the access to premises due to disaster damages. It covers your revenues based on your financial records as you would have earned if the disaster didn’t happen. In addition to that, the policy also covers expenses, like electricity or water that you’re required to pay even though your business is temporary interrupted operating.

    If you have more questions about business insurance or would like to know more about it, read our other blog posts here. 

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