3 Business Insurance Policies You'll Need for 2020

16
January 2020
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As a business owner, you understand the importance of protecting what you've worked so hard to build.

Which professional insurance policies should you have to ensure your business is covered? If you're like most business owners, you probably have at least a general liability policy in place, and perhaps some property insurance coverage...

But is your business truly protected? Read on to learn which types of professional insurance policies you need to cover your business in 2020.

Business Owner's Policy

A business owner's policy is a must-have. Also known as a BOP, this policy brings several types of essential coverage together in one package, all designed to protect small and mid-size businesses.

A BOP includes general liability coverage, business interruption coverage, and commercial property coverage that goes beyond a standard property policy.

Business owner's policies offer several advantages for businesses.

Most significantly, a BOP offers broad coverage at a reasonable price. Some insurers will allow you to add additional endorsements, such as employment practices liability, to a BOP package.
 
While each insurer has individual requirements, many types of small businesses are eligible for BOP coverage. In most cases, a BOP covers loss or damages to business structures, property, machinery, equipment, tenants' improvements, and others' property.

Other coverage may include:

  • Bodily injury liability
  • Property damage liability
  • Personal and advertising injury liability
  • Medical payments
  • Business income
  • Extra expense
  • Civil authority
  • Interruption of computer operations
  • Electronic data

Cyber Liability Coverage

Did you know that 42 percent of cyber attacks are aimed at small businesses? With more than half of the country's small firms reporting a breach within the last year -- at an average cost of $200,000 per attack -- it's easy to see why cyber liability insurance is essential in 2020.

This type of coverage offers peace of mind to business owners worried about cybercrime.

Cyber liability policies cover your liability if your systems are breached, exposing customers' data (like credit card or Social Security numbers).

Cyber liability policies also cover costs related to breaches such as credit monitoring, penalties, fines, not to mention defense against regulator claims, lawsuits, and identity theft.

In addition, cyber policies offer liability protection related to your website, media, and other online content. Cyber liability coverage may also protect against data loss or destruction, business interruption, computer fraud or extortion, and funds transfer loss.

Professional Liability Insurance

Right or wrong, we live in a litigious society; if your business provides goods or services for a fee, you're exposed to potential lawsuits.

No matter how careful you are, how well you train your employees, and how many risk management steps you take, mistakes can be made. If that mistake affects someone else, your business may be liable... and lawsuits can be costly.

Also known as errors and omission (E&O) insurance, professional liability covers certain risks that aren't included in your general liability policy. This may include customer or client claims of negligence, malpractice, or misrepresentation.

Professional liability coverage usually includes expenses related to:

  • Settlements and court costs
  • Legal defense costs
  • Missed deadlines
  • Mistakes or oversights made at work
  • Undelivered services
  • Accusations of negligence

While every business is different -- and has specific coverage needs -- these types of professional insurance policies can offer a broad range of must-have coverage for most companies. The right BOP, cyber liability, and professional liability coverage will provide you with the peace of mind that comes from protecting your business.

If you'd like to learn more, please contact us today to ensure your business is protected.

Over 20 years of experience insuring our community.

 
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