5 Labor Day Lessons on Securing Your Business

The long Labor Day weekend is a time for backyard barbeques and celebrating the holiday with family and friends. It is also an excellent time to review your coverage and ensure you have the following five main types of insurance to help protect your business.

Business Owner’s Policy (BOP)

Business Owner’s Policies (BOPs) are among the most popular insurance bundles for small business owners. They typically combine commercial property insurance and general liability insurance. In some cases, they also include business interruption insurance. General liability insurance protects your business from liability in case a third party is injured, or someone’s property is damaged on your business premises. It can also protect you from libel, slander, and advertising injury claims.

Business Interruption Insurance

Also called loss of income insurance or business income coverage, this type of policy protects you in case a covered event disrupts your ability to operate your business. When business income stops temporarily, business expenses do not. Business interruption insurance can help cover your bills and payroll in the interim.

Commercial Auto Insurance

Generally, personal auto insurance will not cover business use. It is important to have commercial auto insurance to cover your business vehicles and their drivers. This type of policy may include:

• Liability: This covers bodily injury or property damage to third parties.
• Med Pay: Covers medical expenses arising from accidents up to policy limits for you, your employees, and your passengers, regardless of who is at fault.
• Comprehensive: Helps pay for damage to vehicles from vandalism, theft, weather, and events other than crashes.
• Collision: Covers damage to your vehicles caused by a collision with another vehicle or object or a rollover, regardless of fault.
• Uninsured/underinsured motorist: This coverage pays for medical expenses and damages owed to you or your employees or passengers due to an accident caused by an underinsured, uninsured, or hit-and-run driver.

Commercial Property Insurance

This coverage provides the protection you need for leased or owned business buildings and properties. It includes machinery, equipment, furniture, and inventory contained in the building. Damage caused by flooding generally is not covered by commercial property insurance. Work with our experienced agent to ensure you have protection from any potential flood losses.

General Liability Insurance

Also known as business liability insurance, general liability protects your business from claims involving bodily injury and property damage. When claims arise from your products, services, or business operations, it typically covers medical expenses for which your company may be held liable and your attorney fees. It does not cover employee injuries (which are covered by workers’ compensation insurance) or auto accidents. General liability coverage may be purchased in a standalone policy or bundled with other key coverages in a Business Owner’s Policy (BOP).

In addition to the five main types covered above, you may need other types of business insurance, such as workers’ compensation or Errors & Omissions (E&O). Meet with our experienced agent to ensure you have the coverage your business needs at the best available rates.