Small Business Insurance Policy Types

Business Owners Policy (BOP)

The General Liability portion of the BOP policy responds to covered lawsuits alleging bodily injury, property damage, personal injury, and advertising injury arising from premises, operations, products, and completed operations of the small business owner. This policy provides an attorney for legal defense and will pay up to the policy limits in the event of settlement or an adverse jury verdict. The General Liability policy covers the insured business itself and respective owners, directors, officers, employees and volunteers while acting within the scope of their official duties. In addition to General Liability, some small businesses will need Professional Liability (Errors & Omissions) Insurance to cover certain types of lawsuits that arise out of the rendering of professional services.

See General Liability Details.

The Professional Liability / Errors & Omissions Liability policy responds to covered lawsuits alleging certain wrongful acts, errors, or omissions arising out of the delivery of professional services for a fee. Unlike the General Liability policy which covers a different type of lawsuit, the Professional Liability policy covers certain lawsuits alleging purely economic damages. Such pure economic damages lawsuits occur when the injured party alleges that they have suffered a monetary loss due to failure of the small business to provide services in a timely fashion, failure to provide services according to generally accepted standards in the industry, or failure to perform services per the terms of the agreement.

See Professional Liability / Errors & Omissions Liability Details.

The Property portion of the BOP policy responds to covered losses at specified locations to owned or leased buildings, machinery, equipment, inventory, supplies, and contents arising from perils such as fire, lighting, wind, hail, theft, vandalism, vehicle collision, etc. The small business owner is normally reimbursed for property losses on a replacement cost basis.

The Property portion should also provide coverage for the indirect loss of Business Income such as lost profits and continuing operating expenses which result when the business operations are shut down or diminished due to a covered direct loss to building or contents.

Special property extensions of the BOP may add Inland Marine, Crime, and other coverages for losses to property off premises, property in transit, computer equipment, valuable papers, employee dishonesty, forgery & alteration, money & securities, and other types of losses.

See Property Details.

Business Auto

Business Auto insurance covers owned, non owned, and hired autos for liability, uninsured motorists, underinsured motorists, comprehensive, and collision. Even if your small business does not own any vehicles, you still need Non Owned And Hired Auto Liability. See Business Auto Details.

Workers' Compensation

Workers' Compensation insurance may be required by state law and provides benefits to employees and uninsured subcontractors who are injured on the job. The benefits include payment of medical bills, lost wages, lump sum awards for certain disabilities and disfigurements, and a death benefit. Employers' Liability coverage is included for those rare cases when an injured worker opts out of the workers' compensation system. Even if you are not required by state law to carry Workers' Compensation, it is still a good idea to do so for several reasons. See Workers' Compensation Details.

Umbrella

An Umbrella policy provides additional limits of liability coverage in $1,000,000 increments to help to protect against catastrophic claims. The Umbrella policy extends the limits of the underlying General Liability, Business Auto, and Employers' Liability policies. Umbrella insurance can be very inexpensive way to buy peace of mind against losing everything in a lawsuit. See Umbrella Details.