How A Business Owner's Policy Can Protect You

As a small business, as if the responsibilities of day-to-day operations weren't enough to fill your plate, you also have to concern yourself with other things like liability issues. As an owner, when your business or the actions of an employee are responsible for the loss of another, in any form, you could be held liable. Make sure you have the coverage and protection you need in the form of a business owner's policy (BOP).

What Is A Business Owner's Policy?

A BOP coverage component is a commercial insurance plan that is designed to serve as somewhat of an umbrella of protection. Within this plan, all your liability risks are covered, including property loss, general liability and professional liability.

For instance, in the event you suffer property loss because of damage to the building, a customer injures themselves on your property and files a claim or you must shut down due to significant damage to your building, your business owner's policy would kick in and help protect you.

How Can A BOP Help Protect Your Personal Assets?

When you don't have this type of coverage component, you put your own personal assets in a vulnerable state. For example, if your business was the target of a hack that stole the identity information of your clients, a lot could happen.

In this instance, the customers might demand that you cover the cost of an identity protection service for those affected or they may take legal action against you in the form of a suit. Whatever the case, if you don't have coverage in place, they may be able to come after you personally for these costs. With this coverage, you better safeguard your personal finances.

How Do You Choose A BOP Policy?

Just as the needs of every business are different, so should be the components of their coverage. When choosing a BOP policy, the type of business you're operating, what your area of primary risks are and the value of your business are all factors that need to be reviewed and considered. An agent can help you review this information to ensure you choose the right coverage.

As a small business owner, you are often at a greater risk, as you may have less access to capital in the event of a mishap than a larger business. Let a business owner's policy step in and fill this gap for you, keeping you and the business you've worked so hard to develop protected.

For more information on business owner's policies, talk to companies like the Bennett Agency.