Stand-Alone Policies vs. Benefits Packages

As a small business owner, you may not employ a risk manager who can ensure that you have the necessary small business insurance coverage. Successfully navigating the world of small business insurance may seem difficult but can be accomplished easily. In order to become an informed consumer, you will need to select an insurance agent or broker who is knowledgeable about the industry, and can give you an accurate small business insurance quote.

First, you will learn about the different types of small business insurance and narrow down the choices to those you consider essential. Next, you will need to consider your type of business as well as its size. Then, when you meet with agents and brokers, you will be able to ask informed questions and be better equipped to select an agent who can get you the coverage you need at a fair price.

The most common types of small business insurance include general liability, commercial property insurance, and workers’ compensation, which is required if you have employees or you hire contractors. In addition, you may also consider other coverage, such as professional liability or product liability insurance.

A Business Owner Policy (BOP) is a prepackaged policy that includes the most basic coverage for small businesses and can be tailored to your specific business. BOPs usually package commercial property insurance with general liability insurance, and together, they are usually available at a lower cost than when purchased separately.

If the BOP does not cover all of your company’s potential risks, you may want to consider paying more and getting umbrella, or comprehensive, coverage. Umbrella policies prevent gaps in coverage such as general liability, motor vehicle liability, and employer’s liability. They do not, however, protect against professional liability.

It is generally unwise to work with multiple agencies to get the best price when a single agent or broker can design your company’s policies to avoid redundancies or gaps in coverage. This approach means less hassle and less paperwork because you will have a single contract to sign when you update or renew your policy


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