Business Owners Insurance

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.

What is business owners insurance?

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.

What types of coverage does business owners insurance provide?

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

Business Income Insurance

Also called business interruption coverage, this item mitigates any financial losses caused by an unavoidable suspension of business operations due to a cause covered by the policy.

Equipment Breakdown Insurance

If your business relies heavily on the use of equipment, this coverage provides protection from loss associated with equipment becoming damaged or no longer operational due to breakdowns, user error or burnout.

Advertising or Personal Injury Coverage

Protects you and your business from claims brought as a result of unintentional slander, copyright infringement or libel.

Bodily Injury Coverage

Protects you from liabilities for any damages your products, services or employees cause to other people.

Property Damage Liability

Offers protection against damage claims brought by other people if their property is damaged because of interaction with your products, services or employees.

Medical Payments Coverage

Pays for health and medical expenses that result from anyone being injured in an accident while on property owned or used by your entity for business purposes.

Property Insurance Coverage

Protects your business property such as buildings, tools, equipment and personal property from loss caused by theft, fire, flood, earthquake and other perils. It also provides compensation for the full replacement value of these items.

Along with these essential business owner policy coverage options, depending on the type of entity you operate, the following are additional coverage options you may want to include in your policy:

Professional Liability

Employment Practices Liability

Personal Property of Others

Valuable Papers and Records

Electronic Data and Equipment

Identity Theft

It is important to re-evaluate your business needs from time to time and adjust your policy to ensure you have the right level of coverage and maximum protection for your business and assets at all times.

Is there anything a BOP insurance policy does not cover?

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.

Business owners insurance that has you covered

If an unfortunate event were to happen to your business would you have enough protection? As a small or medium-sized business owner, you may feel as if having business insurance is something you do not need, or that it is unaffordable. However, not having coverage, and more specifically the right kind of coverage for your specific needs leaves you vulnerable to losing your entire investment.


No matter what industry you operate in or the size of your budget, there is an insurance option available that will safeguard your finances and keep your business intact no matter what life throws your way.


If you would like to work with a provider that strives to understand all aspects of your coverage needs in order to develop a custom insurance policy to protect your assets and your life, contact Ihry Insurance today and speak with one of our knowledgeable agents to explore your options and get a free business owners insurance quote.

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