Why would you need business insurance
Any accident at the worksite, be it big or small can have devastating effects on your business. Is there a way to prevent a small business from having big losses? There are two of them, and you usually get both kinds of business insurance with a single Business Owner’s Policy (BOP): property insurance and liability insurance.
What property insurance is all about
Business insurance on property provides coverage on physical assets: buildings, machinery, valuable documents, inventory, computers, records and more. Property insurance can also be used to gain income in case your business suspends any operations after covering the loss.
For example, a fire damages or destroys your building. In thus case you may not only get full coverage on the property loss you have taken, but you may also receive income while you’re repairing the facility. Check your policy first to make sure your business insurance provides such coverage.
What liability insurance is used for
Business insurance on liability is used specifically to protect valuable assets of your business in case the actions of your company have cause property damage or bodily injury to any third party.
For example, liability business insurance will cover your expenses in case some person claims to have been affected by your product…or it may cover your expenses on court defense costs in case a competitor takes legal action against you.
Liability and property business insurance
The majority of insurance companies combine the primary property and liability insurance coverage into a single business owner’s policy, which usually costs less than if buying both types of coverage separately. The limits of each type of business insurance coverage can be adjusted specifically to your needs, making the policy more relevant to the risks of your business.