Your business is the end result of time, effort and the investment of your precious resources. You’ve worked hard to build and grow your enterprise, so it is critical to protect it from loss. Doing business in any industry comes with an expected amount of risk, however, being a smart business owner means mitigating any potential damages and losses with a solid risk management strategy.

A single claim brought against your business, or an unexpected disaster can put your property, finances and even your home at risk if you do not have the necessary insurance coverage in place. If you were sued tomorrow, could you continue to stay in business? If a disaster were to happen, how soon would you be able to reopen? Do you know how much coverage you need to safeguard your business completely?

Here is some important information about the benefits of business owners insurance coverage and how it can keep your assets and investments safe from the perils of running a business.

Business owners insurance, which is also known as a business owners policy (BOP insurance) provides protection and coverage for a variety of perils that can affect your business operation and cause financial losses such as crime, property damage and liability claims.

Most appropriate for small or medium sized businesses, business owners insurance protects your financial and physical assets in a flexible and convenient way. The way each policy is designed makes it simple for you to adjust your coverage options for various needs as your business grows and changes.

Independent contractors, retail merchants, restaurateurs and any other business owner with an entity that interacts with the general public will benefit tremendously from having business insurance coverage, and in some cases it is required to have BOP insurance before you can legally operate a business.

The following are important factors for determining if a business insurance policy is necessary for your needs:

• Do you need general liability insurance coverage?
• Does your business own property such as buildings, furniture, computers and tools?
• Do you store and manage important data for your business and clients?
• Do you have a staff or employees who could potentially affect your business in a negative way based on their actions and behavior on the job?

If you answered yes to some of or all of these questions, having business owners insurance is essential to keep your assets safe.

The following are some of the general coverage elements that make up most basic business owners insurance policies.

While the list of coverage options for business owners insurance is long and comprehensive, it is important to note that there are several areas that standard policies do not typically cover, which include, but are not limited to the following:

• If you provide professional services directly to clients, there are specific types of claims that may not be covered by a business owners insurance policy.
• If during the course of business you give clients poor or inaccurate information and they, as a result, file a lawsuit against your business, the damages may not be covered by a basic business owners policy.
• Generally, business owners insurance also does not provide coverage for auto insurance, disability insurance or workers’ compensation.

It is important to consult with your insurance agent to determine the types of coverages that cannot be included in your business owners policy contract and to find the best ways to fill any gaps with additional supplemental insurance where necessary.