Understanding the Basics of Business Insurance: What Business Owners Should Know

​A Business Owner Policy or BOP can provide for the basic liability and liability coverage for starting businesses. However, if your business is constantly growing and becoming more complex, consider purchasing a Commercial Package Policy or CPP.  Similar to the BOP, COP allows you to group various coverage types under one policy. Most CPPs comprise of:

1. Property Insurance and General Liability Insurance
   Property insurance covers damage to buildings, equipment, and inventory. On the other hand, the general liability insurance covers costs in case of injuries sustained at your business and from utilizing your products and services.
   
   
2. Business Income Insurance
   For the incidence of lost revenues and extra expenses that might require your business to relocate or be closed, this insurance covers the expenses needed. It is also known as business interruption insurance.
   
   
3. Business Vehicle Insurance
   For the vehicles utilized and owned by your business, this insurance covers its costs.
   
   
4. Business Crime Insurance
   This type of insurance covers losses due to burglary, computer fraud, dishonesty from employees, and other crimes concerning your business.
   
   
5. Commercial Umbrella Liability
   This type of coverage heightens and widens liability coverage and simultaneously fills in the gaps left by other coverages.
   
   
6. Electronic Data Processing Coverage
   This pays for any loss or damage associated with the use of electronic data processing media or equipment owned by your business.
   
   
7. Equipment Breakdown
   This covers losses from defective heating, electrical, air conditioning, telephone systems, and other equipment used in your business. It is also called boiler and machinery insurance for its purpose.
   
   
8. Employment Practices Liability
   This pays for the expenses associated with disputes with employees regarding termination, discrimination, sexual harassment, and other related employment issues.
   
   
9. Inland Marine and Pollution Liability
   Inland Marine includes coverage over the transport of goods in land and water, providing detailed protection for movable assets during transit. An example is during transportation from a warehouse to a store or storage. Pollution liability covers expenses brought by pollution, this includes clean-up and personal injury.

Conclusion       
Unlike BOP that has limited coverage for risks and availability for specific types of small businesses, Commercial Package Policies can be better customized to the certain needs of your business and offers a wide variety of choices. By knowing the components of commercial package policies, business owners can understand the basics of business insurance.

At Desmond Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (859) 491-5100 or Click Here to request a free quote.