Do You Need a Business Owner’s Insurance Policy?

Starting and running a business seems like all fun and games, until you find out there’s much more to it than delivering your product or service. You have to take care of things like legal contracts, leases, licensing, B&O tax, 500 other kinds of tax (we exaggerate, but only slightly…), liabilities and INSURANCE, of course. So how do you know what kind of insurance you might need for your business?

The size and type of your business, including how much potential risk and liability is involved, will determine the types and amount of insurance you need. For low risk businesses, a Business Owners Policy is a good basic policy to consider.

The Business Owners Policy is like a home owners insurance policy where the foundation of the policy consists of liability and property coverage. Then there are a-la-cart coverage add ons, like Cyber Liability, Professional Liability (E&O) and more, which you may or may not need.

Who Needs a Business Liability Policy?

So, who needs a BOP (or Business Liability Policy)? Well… do you have a business license and make more than $2000/year profit in your business? Then you likely need a BOP!

Here are some examples of scenarios a BOP might cover…

Liability

A photographer is in a photo session and is having the client move around to get the right angle. The client trips over a rock or a light stand and breaks their ankle. The photographer could be liable for the medical expenses incurred by this client and that liability would be covered by a Business Owners Policy.

Lost Product

Sticking with the photographer example, they do a photoshoot for a large extended family. The Grandma passes away after the photoshoot and before the photographer delivered the photos to the family they were lost or unusable. Since they can’t be retaken with Grandma in them, the family sues. This is considered lost product and your BOP would cover you.

Professional Liability

A business coach or branding expert offers advice that turns out poorly for a client. The result is the loss of an employee impacted income and they decide to sue the coach. Your BOP would provide Professional Liability and cover you in this case.

In the case of any lawsuit, your insurance company has a duty to defend you, which can provide peace of mind as you go about your business, running your business. You can sleep at night knowing your insurance company will have your back if the worst were to happen.

How Much does a Business Owners Policy Cost?

Costs are variable, depending on your business needs, but the typical range of a Business Owners Policy is generally $400 to $600 per year. For a free custom quote and to see if a BOP is right for you and your business, contact us.