When was the last time you updated your Business owners policy? Not having the right Business Owners Policy can wipe away years of your hard work. Decades of hard work building your company can be taken away or crippled by unexpected expenses. What exactly is Business Owners Policy insurance?
- Property insurance for your buildings and everything inside.
- Business interruption insurance, which covers the resulting loss of income from any catastrophe or event.
- Liability protection insurance, which will provide legal assistance to cover your company if anything goes awry due to defective products, faulty installations and more.
Here at Providence Capital Funding, we hear all too often about the times where unexpected expenses start to pile up. Fixing a mistake made by a careless employee to being out of business because of a kitchen fire. Not having the proper coverage can leave your company and sometimes yourself vulnerable. In society today, we’re overly litigious. The slight mistake can have you in court, wasting valuable time and money. Being covered by BOP insurance can help protect you in court and out of it.
We understand that running a business comes with many different costs. Some are more necessary than others, like rent, and payroll costs. Business Insurance is one of the expenses that should be a necessity. Depending on how your business is structured, business insurance can give you additional liability protection against former employees, to disgruntled customers. Even if you have a LLC, it’s good to have the additional protection of a BOP.
Here are some quick tips to ensure you get the coverage and policy –
- Different businesses need different amounts of coverage. If you’re a restaurant, you’ll want to have higher coverage limits compared to an office building. You want to be properly insured just in case you experience a catastrophic loss, that way you can completely recover.
- Add to your policy as your company grows. As your business experiences growth, its easy to overlook updating your policy and adding to it. Don’t make that mistake.
- Ensure your coverage meets the state minimum and then some. It’s better to be overinsured than under. Trust us on this.
- Shop around. Don’t just trust the first slick talking salesman that promises you the lowest premium. It’s similar to shopping for car insurance. There are many insurance brokers out there that don’t necessarily have your companies best interest at heart. Make sure to shop around and get at least 3 quotes with the same coverage. A good insurance broker will be very thorough while learning what exactly your company does. Some insurance brokers will try to sell you separate policies that are pricier, but just know that the Business Owners Policy combines these policies into one package.
- If you read our last article about the Petya attack, you’ll be relieved to know that there is currently online DDoS attack and Cyber Risk insurance for companies that are primarily online-based.
Let us know if you have any suggestions for future articles! We’re open to suggestions. As usual, if you’re considering an expansion or even looking to get a working capital line, we’re happy to help.