Finding Commercial Insurance

To efficiently package the various kinds of commonly needed coverages for medium to small businesses, most large commercial insurance companies offer Business Owners Policies. A Business Owners Policy (BOP) includes coverage for all of the most important property and liability insurance hazards and risks, and several other coverages, into a single policy appropriate for most medium to small sized businesses.

A customary BOP includes business loss of income insurance. This insurance will compensate the business owner for the business income lost as a result of a disaster. Disasters often halt or disrupt business operations and may cause the business owner to have to shut down or leave the business premises. The BOP also pays for the additional expense the business owner may have if he or she is forced to move to and operate out of another temporary location.

However, a business owner should not assume a BOP includes blanket coverage for all of his or her commercial insurance needs. Only a careful reading of the policy will reveal which critical areas to his or her individual business have been omitted. In order to have adequate coverage of the particular risks involved with a business, other coverages or riders may be necessary to tack onto the BOP. For instance, the typical BOP will not cover signage physically separate from the business premises itself, so if a business has a sign independent and free standing from the main premises, additional coverage may be necessary to insure it, requiring the payment of an additional premium.

Also, and more important today than ever before, interruption of internet service is not usually covered. If a business is engaged in electronic commerce, this would be an important extra coverage to obtain above and beyond the typical BOP. Interruption of internet service and electronic commerce for such a business could result in considerable lost income. If a business relies heavily on electronic commerce for revenue, the business owner may want to look into commercial insurance rates and add coverage for lost income and extra expenses incurred in the event e-commerce is obstructed temporarily or entirely stopped for one reason or another. Look for commercial insurance quotes from several different commercial insurers to get the best value for your business money.

While BOP’s can be an economical solution to a business owner’s insurance requirements, not all businesses are eligible for such insurance. BOP insurance is restricted to small- to medium-sized businesses that meet certain explicit criteria. Among the many factors involved in determining a business’s eligibility for BOP’s are the size of the premises, the requested liability coverage, the nature of the business and its operations and the amount of business it conducts away from its premises.