5 Important Business Owner Policy Tips You Cannot Afford to Ignore
Every business carries its own fair share of risks. There are some risks which you can predict and hopefully avoid. However, there are plenty which you cannot foresee. By taking necessary precautions before hand, you can avoid those risks from damaging your business too much. Plenty of these risks can be covered by a business owner policy.
1. What is the Necessity for a Business Owner Policy?
A business owner in United States is required to buy some insurances by the law. Workers’ compensation insurance is one such example. This insurance does not count among those which are business owners legally bound to buy. However, that does not by any means diminishes its importance. This policy is specifically designed to benefit small business owners. In simple words, it is a culmination of many different policies. Theft, civil lawsuits, accidental damage are but a few instances where it provides coverage.
2. In What Instances Does a Business Owner Policy Provide Coverage?
There is no set number of instances where business owner policy can provide full or partial coverage. This policy is generally customizable. Hence, the business owner can choose its scope of coverage. Typically, it can cover following events;
- Natural or artificial disasters like earthquakes, floods or fires
- Employee theft
- Employee accidents
- Death of a business partner or a key executive
- False advertising
- Copyright infringement
- Product related injuries
- Product related accidents
- Data breach etc.
3. In What Instances Does a Business Owner Policy Not Provide Coverage?
A Business owner policy does not cover professional liability, auto insurance, worker’s compensation or health and disability insurance. You must obtain separate insurance policies in accordance with your respective needs to cover related professional services, vehicles and employees.
4. Is It Wise Buying a Policy Without Proper Information and Planning?
Making the right decision is not so easy. You need to understand your business and its needs. knowing the essential needs and risks is the first step. You can ask an experienced and impartial insurance agent to outline these needs and risks. This will help you gather information about any foreseen and unforeseen risks. Then you will need to make a proper plan. A solid business plan will attract more investors. Not only that, it will also ensure insurance underwriters that you know what you are doing. This way you will be able to secure a good business owner policy for yourself.
5. Which is better; a Standardized Deal or a Customized Personalized Deal?
Several insurance carrier companies offer the option of customization to its clients in certain businesses. They can enjoy the insurance services; which are uniquely designed to minimize their unique risk scenarios. Due to which hold threat potential for only their business, or their type of business. Such customization’s can be availed by any small or mid-size businesses, especially those who think several services offered are redundant, or cannot afford the full portfolio of services included in a standard BOP.
Most businesses are required to buy multiple insurances to access a full range of coverages. Business owner policy is uniquely suited in this regard. It bundles different type of coverages together. It can not only save a lot of headache, but also a lot of money. You can also maintain the uniqueness in your business insurance package. You have the option to customize insurance to suit your unique needs. By adding endorsements, riders or exclusions; you can solve many future potential problems.
Get Access to Business Owner Policy in Texas
SG Financial Inc. is one of the best Dallas based insurance agencies. So, we can provide constructive advice in your goal of acquiring proper business owner policy. To clarify, Our agents have decades of experience in the field. We are aware of many different business niches, the pitfalls, the legal hurdles; and how to cover them because we are the best at what we do.