Business or commercial insurance provides protection for unexpected circumstances in your business, such as property and liability coverage or even workers’ compensation benefits. Nearly every business requires general liability coverage to safeguard themselves against claims that your company caused bodily injury or property damage to third parties. Package property and liability policies, such as Business Owner’s Policies, can provide this insurance, in addition to workers compensation, professional liability, and business auto policies.
1. General Liability
Business insurance provides protection from legal fees and settlements that could arise as the result of an accident or incident, protecting against bodily injury, property damage, reputational injury, and advertising injuries. Although not required by law, most small businesses should consider general liability coverage as part of a Business Owner’s Policy or as an independent policy.
NerdWallet’s top-rated providers provide commercial general liability insurance that can be tailored specifically for each company’s risk profile, with policies available online and many offering medical payments coverage as standard.
2. Business Owner’s Policy (BOP)
General liability policies provide small businesses with protection against third-party bodily injury claims brought about by customers or clients and lawsuits filed by these parties. Furthermore, BOP policies usually offer commercial property coverage and business interruption protection should an incident halt your operations and incur costs to cover losses associated with them.
Businesses that own or lease their space, such as contractors, wholesalers, office-based businesses, and retailers, can take advantage of a Business Owner Policy (BOP). A BOP consolidates key insurance coverages into one policy for cost savings and easy management; additionally, it can be customized by adding endorsements or additional coverages tailored specifically to business needs and risks, such as workers compensation insurance or cybersecurity coverage.
3. Commercial Package Policy (CPP)
CPPs (Commercial Package Policies) provide broad coverage in one policy, providing cost savings and easier administration than managing individual policies individually.
CPPs offer more customization than a Business Owner’s Policy and may better meet the unique risks faced by small “main street” businesses such as barber shops or computer repair shops that interact directly with customers. Furthermore, these policies may offer greater flexibility with policy limits and underwriting than BOPs.
Consult with an insurance agent regarding whether a CPP would be best for your company based on size and risk level; depending on this factor, it could prove more cost-effective than purchasing BOP coverage.
4. Workers’ Compensation
Workers’ compensation (or “workman’s comp”) protects businesses and employees by covering medical bills and lost wages for employees injured on the job, helping protect small businesses against costly lawsuits.
Insurance policies are both state requirements and good business sense, providing employees with benefits as well as protecting business owners against costly lawsuits if an employee becomes seriously or fatally injured at work. Policy costs depend on multiple factors, including experience modification rate and workforce size.
5. Business Auto
Businesses of all kinds rely on vehicles for deliveries, transportation, and daily operations. Business auto insurance provides protection to these vehicles and the company in case an accident happens; it includes uninsured/underinsured motorist coverage as well as rental reimbursement and collision coverage.
Small business owners have the flexibility to select between adding coverage for only company vehicles, personal leased and hired vehicle liability coverage, or broad form drive other car (BFDOC) coverage to cover employees when using personal vehicles for business-related reasons – potentially helping lower premium costs overall.
6. Business Owner’s Policy (BOP)
A Business Owners Policy (BOP) combines business property insurance and general liability coverage into one convenient package to protect small businesses against common risks. A BOP typically covers equipment, furniture, and inventory that moves with you as well as business interruption insurance in case of a fire or natural disaster that leads to revenue losses and may include liability coverage against bodily injuries, property damages, and mistakes made when providing services to customers.
BOP policies tend to be more affordable than individual policies for each type of coverage; however, they don’t typically include professional liability, commercial auto, or workers’ compensation insurance, which are all typically available separately to most small businesses.
7. Business Owner’s Policy (BOP) with Commercial Property
BOPs (Business Owner’s Policies) are increasingly popular among small business owners as a cost-cutting measure, bundling general liability and commercial property insurance into one policy and saving businesses money by eliminating separate policies altogether.
A BOP can protect your business against property damage, theft, and some weather events, as well as provide liability protection that covers customer injuries, advertising injury, and product claims.
Based on your needs, a BOP may include coverage for computer equipment and inventory. Many providers also provide optional add-on coverage options like crime, spoilage, forgery, and fidelity, which may be tailored specifically for your industry.
8. Business Owner’s Policy (BOP) with Commercial Umbrella
A business owner’s policy (BOP) is a type of commercial insurance policy that combines general liability and property coverage into one package, typically covering damage from fire, storms, theft, and vandalism to your property as well as business interruption coverage in case an event forces your operations to temporarily cease due to one of its covered causes.
Your business has taken years of hard work; don’t allow one unexpected event to destroy its success! Comprehensive small business insurance will save time and money while alleviating stress. For maximum coverage increase, consider adding an umbrella policy, as this increases maximum coverage limits.
9. Self-Funded Health Insurance
Under this type of group health insurance plan, employers take on the financial risk for healthcare expenses on an as-needed basis rather than paying an insurer an up-front premium amount; additionally, funds may be retained when claims prove lower than anticipated.
Small businesses could benefit from taking this route because it helps minimize profit margins added by insurance carriers and can lead to cost savings as well as provide greater flexibility and customization of benefits to meet specific company goals and employee needs.
Self-funded health plans differ from fully insured plans in that they require more involvement on the part of employers to oversee and manage claim payments, provider contracts, and regulatory compliance. Third-party administrators (TPAs) can handle these duties on your company’s behalf to reduce administrative overhead costs.
