Called the Business Owners Policy, this is insurance that combines general liability, property and business interruption coverage in one easy-to-purchase package to meet the needs of many small companies.
It is common for small business owners to be unaware of the Business Owner’s Policy or think it is too difficult to obtain. However, small businesses of numerous types—including professional services firms, consulting, retail, healthcare, wholesale, small shops, sole proprietorships, home-based businesses, and businesses located in rental space—can benefit from a Business Owners’ Policy. Business Owner’s Policies also can cover legal expenses from potential lawsuits, depending on the type of policy selected and the type of legal matter.
Owners of home-based businesses may assume that homeowners insurance covers business claims. According to a poll taken by the Independent Insurance Agents & Brokers of America, 40 percent of the survey respondents said they didn't need additional coverage because they are protected by some other type of policy, such as their homeowners insurance. An additional 30 percent said their businesses are too small to insure. It is important to note that business equipment is not covered by most homeowners insurance. However, a Business Owner’s Policy can provide coverage for business equipment.
Many small business owners often believe the Business Owners Policy is too expensive. The Business Owner’s Policy costs as little as $500 annually for up to $1 million in coverage. Higher limits are also available if required by the client. As an added bonus, Business Owner’s Policy premiums are generally tax deductible.
While many insurance companies do not offer Business Owner’s Policy protection to small businesses less than two years old, there are a few carriers that do. Buying a Business Owner’s Policy directly online is the easiest and most convenient way to secure coverage, but most insurers still sell it through insurance agents. Even companies that already have business insurance do not need to wait for policy renewal to shop around. After switching to a new insurer, the former carrier should offer reimbursement for uncovered months.
Before purchasing a Business Owners Policy, make sure the coverage is from a best-in-class insurance company that:
- Presents a quote online within minutes
- Offers an easy-to-use customer portal
- Employs specially-trained customer service representatives and claims examiners who understand the unique needs of small businesses
- Offers other business coverage including intellectual property or workers’ compensation insurance
- Has an A rating by A.M. Best Company
- Supplies tips and advice for reducing risk to protect your business and curb costs
No matter the size or age of a small business, securing a Business Owner’s Policy is easy and affordable. For more information, please visit starrinsure.com.