Regulation Top Small Business Concern, Insurance Addressing Others


linda-mcmahon

Every business is a risky venture. Small businesses, especially startups, are known to be particularly vulnerable to changing trends of regulation in America.

In a recent meeting with small business owners in West Virginia, U.S. Small Business Administration leader Linda McMahon said, “For every $10,000 of regulation, 3 to 6 percent of small businesses will go out of business”.

This is a big problem which many small business owners have yet to find a solution to. While regulation is a core concern, there is a number of other risks small businesses face which can be more easily mitigated through insurance coverage, such as a Business Owners Policy (BOP). What is a BOP is and how it can help to keep your small business in business?

A convenient policy to protect small businesses

The risks involved in business are many; the building(s) and content of the business could be brought down by a fire or some other catastrophe. Also, some things your business does or fails to do could cause harm to others leaving you responsible for the damage.

With such risks facing most small businesses, there is absolutely a need for them to find forms of coverage, which for many includes property and liability. A BOP is a policy that packages elements of General Liability, Commercial Property, and Business Interruption coverages. These policies can be purchased separately, but a BOP will protect your business from third-party liability claims as well as property damage in the event of a covered incident.

Who should go for a Business Owners Policy?

Generally, BOPs are applicable to and will benefit a significant portion of small businesses. However, some categories of businesses would particularly gain from the product should something bad happen.

Businesses with an office space for example would want to consider going for a BOP. The plan covers not only damage to the building, but also to the assets within the building; assets like desks, office equipment, and furniture.

Some businesses are particularly vulnerable to third-party claims of liability. They receive visitors daily; visitors who could incur some sort of harm (by falling or otherwise) while at the business premise and decide to sue. That can cause significant trouble for the business owner.

Whenever you go for a BOP, you must ensure it is the right fit for your business. As a consultant for example, you may not need property coverage if your client’s office serves as your main workspace. One thing you may need though is a professional liability insurance.

For those companies which have property to protect and regularly interact with third parties, a BOP helps to ensure that you get exactly the insurance coverage you need for the kind of work you do.

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