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Business Insurance: Are You Walking A Fine Line?

Having the right insurance is of paramount importance. 


As a small business owner, financial resources can be scarce. In some ways, small business owners may have greater exposure than large business owners simply because they don’t have the extra cash available to cushion unexpected circumstances. From a cash flow standpoint, many small business owners operate on a fine line between success and financial disaster – which is why having the right insurance is of paramount importance.

What types of business insurance should you consider?

Since your business is unique, your insurance needs are too, and it’s important to work with an insurance professional who takes the time to understand your business. That’s the only way you can be certain of getting the right combination of liability, property, auto, workers’ compensation, and other coverages for your specific risks.

A comprehensive solution in a simple package

With the diversity of coverages you might need for your operation, it can get pretty confusing. That’s why so many small and mid-sized businesses choose a package policy, one that combines protection for all major property and liability risks in one package. One of the most common packages is the Businessowners Policy (BOP).

What’s covered by a BOP?

BOPs include property and liability coverage for bodily injury, property damage, advertising injury, and personal injury due to defective products, faulty installations, or errors in services provided. BOP liability coverage can also include compensation for medical expenses incurred as a result of an injury to a third party on your premises for up to one year after the incident. Also, many BOPs include Business Interruption coverage for loss of income due to a fire or other catastrophe that could disrupt the operation of your business.

There is no one-size-fits-all BOP, and you can tailor a policy to your specific needs. The coverage is generally less expensive than it would be if you bought each coverage as a separate policy. Those are two good reasons why they’re so popular.

But keep in mind, a BOP won’t cover everything. There are other important coverages you should consider to fully protect your assets, including:

  • Workers’ compensation insurance – Helps injured workers return to work and health as quickly as possible with coverage for their medical bills and lost compensation.
  • Professional liability insurance – Provides coverage for errors and omissions (E&O) or malpractice.
  • Product liability – Protects you against claims arising from accidents or injuries caused by your product, and covers the cost of recalls, removal of sold items from your store, and legal defense fees and claims.
  • Employment practices liability – Protects you from lawsuits by current, prospective, and former employees.
  • Commercial auto insurance – Protects any vehicles you are using for your business for physical damage, comprehensive and collision and liability for damage to others’ vehicles or to protect against suits for damage or personal injury. Coverage should be purchased for Uninsured and Underinsured motorists to fully protect you and your business. 

Is a BOP a good fit for your business? To find out, talk to an independent agent about FICOH’s BOP options. Whatever your coverage needs, we’ve got a solution to get you off the treacherous fine line and firmly back on the side of success – in a better position to weather unexpected circumstances.