Protect Yourself with Business Insurance

Running a small business can be challenging enough without worrying about unexpected events that threaten your company and your livelihood. That’s where business insurance can help. Business insurance protects both your personal and business assets from catastrophic events, such as a fire, or from liability due to bodily injury, property damage or product defects.

Several Options

Insurance companies offer several types of business insurance: general liability, which includes protection from financial loss resulting from bodily injury, property damage, medical expenses, lawsuits, judgments, etc.; commercial property, including damage to property from weather events, civil disobedience and vandalism; product liability; professional liability; home-based insurance; and businessowner’s policies. Minimal coverage for owners of small businesses to consider include a businessowner’s policy and home-based business insurance.

All in One

A businessowner’s policy (BOP) offers protection from all major property and liability risks in one policy. Combining coverage under one umbrella may save you money. BOPs provide protection in the following areas:

• Property insurance covers buildings and their contents owned by the business. A businessowner can choose either standard coverage or more comprehensive special coverage.


• Business interruption insurance covers the loss of income as a result of a major catastrophe, such as a fire, that prevents your business from continuing to operate. The policy may also cover expenses incurred while operating your business from a temporary location.


• Liability protection covers financial loss to your business resulting from bodily harm or property damage caused by defective products, faulty installations or errors in services provided.

A BOP does not include professional liability coverage, which protects against financial loss resulting from malpractice, errors and negligence. Businesses that provide services to customers may want to add a professional liability policy to their other coverage.

When You Work from Home

Small business owners whose business is run out of their personal homes may want to consider home-based business insurance. Coverage is added as a rider to a homeowners policy and provides liability coverage for third-party injuries, as well as protection for a small amount of business equipment.

Protecting your personal and business assets from financial loss should be one of your top priorities as a small business owner.