An all-inclusive insurance policy protects your business against financial loss and liability claims, meeting legal requirements and mitigating industry risks.
Consider engaging a trusted advisor to assess and recommend appropriate policies. They can assist in determining coverage limits, deductibles and any other factors which influence costs.
Business owners’ policy (BOP)
BOPs provide small businesses with an effective insurance coverage option by consolidating all key coverages into one policy. Furthermore, they’re flexible enough to include other forms of business coverage such as workers’ comp, commercial auto and professional liability policies. When selecting this plan for your small business it is wise to consult an independent agent or broker in order to ensure you have all necessary protections in place.
Business Owner’s Policies (BOPs) provide comprehensive insurance packages designed to address most risk exposures encountered by small business owners, streamlining insurance management while saving costs. BOPs make customizing coverage easier through adding endorsements or optional coverages tailored specifically for specific risks.
To qualify for a BOP, a business must meet certain criteria that ensure its low-risk profile and meet certain criteria. These may include being service-based with less than 100 employees and revenue below $1 Million annually; and have small commercial spaces and assets. Larger firms requiring complex coverages usually won’t qualify.
General liability
General liability insurance provides small businesses with protection from financial loss caused by bodily injury or property damage claims. Companies may need this policy if they’re open to the public, work with clients or customers directly or rent or own office space – otherwise even one lawsuit could cripple a small enterprise! Luckily, businesses can purchase general liability coverage quickly online and start benefitting within 24 hours!
Insurance policies provide coverage against legal fees, court costs, settlements or judgments in the event of a claim, as well as repairs or replacement of third-party property damaged by company activities such as retail store injuries or landscaper damages to clients’ outdoor sculptures while working at their homes.
Small business owners usually purchase this policy shortly after starting up their companies, but existing companies should periodically review their policies to make sure that their limits match up with their risks. For instance, retail stores might require higher aggregate and per-occurrence limits than tax preparer offices or babysitting services.
Workers’ compensation
Workers’ compensation insurance is required by most states and is an invaluable way of protecting both you and your employees should they become injured on the job. Workers’ comp ensures that injured employees receive medical care as well as compensation for lost wages regardless of who caused the incident or illness.
As a business owner, you can reduce premium costs by implementing workplace safety programs. Doing this will lower your experience modification rate (EMR), used to calculate workers’ comp premiums annually.
EMR is calculated by comparing your company to similar ones in your industry using classification codes. A clean claims history is key for qualifying for lower premiums and EMR scores, so pay-as-you-go workers’ comp coverage may also help – particularly beneficial to small businesses with seasonal employees or fluctuating payrolls – making payments according to actual payroll rather than estimated payments. Also make sure all employees are accurately classified so as to avoid costly misclassification fines; most workers’ comp policies also offer optional medical deductibles which help lower premiums further.
Professional liability
Professional liability coverage, commonly known as errors and omissions insurance for small businesses, protects them against potential claims of negligence that could threaten both their reputation and finances. This coverage is especially crucial in industries like tech support services or construction where even one mistake could lead to costly lawsuits.
Legal expenses and damages associated with even groundless claims can quickly add up, making this coverage all the more invaluable in today’s litigious climate. Furthermore, some client contracts require contractors and professionals carry such coverage.
Insurance policies generally operate on a claims-made basis, meaning they only cover incidents or accusations occurring while the policy is active. Therefore, it’s vital that small business owners regularly review and update their policies so they remain current at all times. Insurance producers can assist business owners by reviewing policies to assess if additional coverage or gaps need filling; assess and lower premiums by helping reduce risks and losses; as well as help lower their premiums with risk mitigation strategies.
Errors and omissions
Though errors and omissions coverage isn’t necessary for all small businesses, it’s advisable for any that provide professional services or advice. A policy will cover legal costs incurred from clients alleging an error was committed or information was withheld, leading to financial loss for them.
Professionals that could benefit from E&O insurance include architects, contractors, attorneys, engineers, marketers, therapists and real estate agents. Sometimes clients or industry regulations require these professionals to carry this form of coverage.
Likewise, if your small business employs employees, errors and omissions insurance should also be considered as protection against work-related incidents that could cause bodily injury or property damage claims. It offers protection for you as an owner as well as employees.
Thimble’s E&O policies start from $36 per month and can help your small business avoid costly lawsuits while continuing operations.
