{"id":78,"date":"2023-10-10T21:08:00","date_gmt":"2023-10-10T21:08:00","guid":{"rendered":"https:\/\/businessyield.com\/ins\/?p=78"},"modified":"2023-10-11T10:58:35","modified_gmt":"2023-10-11T10:58:35","slug":"small-business-insurance-what-is-it-how-does-it-work","status":"publish","type":"post","link":"https:\/\/businessyield.com\/ins\/small-business\/small-business-insurance-what-is-it-how-does-it-work\/","title":{"rendered":"Small Business Insurance: What Is It & How Does It Work?"},"content":{"rendered":"

Whether you have one or a few hundred employees, sell products or offer services, or command your operation from inside or outside your home, your insurance considerations as a small business owner are quite different from those of an individual consumer.<\/p>

As small businesses climb their way up to profitability, they may face situations that can adversely impact their finances. Accidents and mistakes can lead to costly lawsuits, while natural and man-made calamities can easily wipe out their hard-earned revenue. <\/p>

This is where having the right insurance comes in handy. Getting the right information on insurance for small businesses can be the difference between success or failure when things go wrong with your business.<\/p>

What is small business insurance?<\/strong><\/span><\/h2>

Small business insurance, sometimes called commercial insurance, helps protect a business’s assets, property, and income. A business owner\u2019s policy (BOP) is the most common insurance product for small businesses, according to the Insurance Information Institute (III)<\/a>. <\/p>

A BOP typically includes three basic types of coverage to help protect a business: business property coverage, general liability coverage, and business interruption coverage.<\/p>

If you are a small business owner, you may also be able to buy additional insurance coverages to customize your policy based on your business\u2019s specific needs. These additional coverages may include commercial auto coverage, errors and omissions coverage, key employee coverage, and more.<\/p>

What Is a Business Owner\u2019s Policy?<\/strong><\/span><\/h2>

A Business Owner\u2019s Policy (BOP) is a convenient and cost-effective insurance option for small businesses. It combines the coverage of all major liability and property insurance risks into one insurance policy package meant to specifically meet the coverage needs of small businesses. <\/p>

This policy combines the following common insurance coverage options into one bundle:<\/p>