Business Insurance 101 with Farmers
Protecting your business is good business. Having the right insurance can be the difference between surviving a calamity and losing everything. Many business owners have learned the hard way that a lawsuit, theft, accident or natural disaster can wreak havoc on their companies.
Business Owner’s Policy
Often referred to as BOP, a business owner’s policy rolls multiple types of insurance into a single policy. Usually this is at a lower cost than buying each type of insurance individually. A business owner’s policy might include business property, business interruption and general liability coverage.
General Liability
This coverage helps protect your company if someone is injured at your place of business. I also covers if injuries or damage result from the use of your products or services. It can help shield your business from situations that could be perceived as negligence. Most general liability policies cover financial obligations such as medical costs, as well as legal defense expenses and settlement awards if your business is sued.
Professional Liability
Also known as errors and omissions insurance, this type of insurance helps protect your company from claims that its malpractice or negligence damaged a client or other third party.
Business Property
This insurance covers loss and damage to leased or owned company property resulting from a variety of events, such as fire, wind or vandalism. An “all risks” business property policy covers loss and damage from a range of sources, while a “named peril” policy specifies the types of hazards it covers.
Cyber Liability
Customers and employees trust you to store their information. From billing information to social security numbers. If someone stole that data, how would that impact your business?
For every time a company like Target gets hacked there are dozens of smaller companies that suffer data breaches.
Cyber liability insurance can cover you for the expenses you incur from a data breach.
Expenses such as…
- Fixing the breach
- Loss of income
- Notifying your customers
- Public relations
- Lawsuits
Business Vehicle
This type of policy protects your business against damage to an owned or leased vehicle that you or your employees use for business purposes. It also provides coverage if a third party claims bodily injury or property damage related to an auto accident.
Business Interruption Insurance
This policy guards against the effects that come from unexpected events and natural disasters that might otherwise cause your company to temporarily relocate or close. It helps businesses maintain cash flow while they replace equipment and repair physical damage to their facilities. It typically provides reimbursement for up to a year of lost revenue.
Umbrella Liability
This type of insurance fills any gaps left by the insurance that your company carries. For example, if your general liability policy has a coverage limit, an umbrella policy will cover losses that exceed this amount. It can also provide protection in areas excluded by other policies. The premium for an umbrella policy may be lower if you purchase it from the same insurer who provides your other policies.
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