Small Business Owners’ Guide to Comprehensive Insurance Coverage

Business liability & property insurance protect your company against liability charges for accidentally injuring someone or damaging their property.

Determining Liability and Damages

You’re probably liable if an injury or property damage results from your negligence. An example of liability on your part is when a customer trips and falls on a poorly-lit stairway on your business premises. A liability lawsuit can be amicably settled out of court or resolved through trials or arbitrations.

Best Liability Policies for Small Businesses

 Owning a commercial general liability insurance.

 What does a BOP Typically Cover?

The liability component of your business insurance policy can cover your company against claims like:

  • Bodily injury, including injuries, sickness, disability, and death. It may also cover emotional trauma
  • Property damage
  • Personal and advertising injury, such as copyright infringement or defamation

Your business liability protection is subject to your policy’s coverage limit and deductible

Significance of Medical Payments Coverage

 The medical payments coverage includes the cost of treatment for bodily injury for which you’re liable. It makes these payments to the victim even without a lawsuit claim.

Parties Under BOP Coverage

Business liability insurance covers several parties within the scope of their duties on behalf of the insured company. The insureds include:

  • Business owner (sole proprietor or partners mentioned in the Declarations in the policy )
  • Spouse/partner of the owner
  • Officers and directors
  • Shareholders
  • Staff members and volunteers

 Types of Policy Limits

The two main types of liability coverage limits  are:

  • Per-occurrence limit: This is the maximum amount the insurer can pay for a single covered incident like property damage, bodily injury, or medical expenses.
  • Aggregate limit: This is the most your insurer can pay for all covered liabilities throughout the coverage period.

 How does “Products-Completed Operations” Coverage Help?

Products completed operations insurance covers business liabilities such as:

  • When a product you make, sell or distribute injures a user or damages their property due to a design or manufacturing defect
  • When you’re liable for substandard contract work, such as HVAC installation, that results in bodily injury or property damage

Endorsements for BOP Liability for Added Protection

You can buy endorsements to increase liability coverage for specific BOP components. Examples of these include:

  • An Employment Practices Liability endorsement covers you against employees’ discrimination claims
  • A Liquor Liability endorsement covers bar, pub, or liquor store owners against liability for serving alcohol to an under-age or already intoxicated patrons
  • An Employee Benefits Liability endorsement is for protection against mismanagement  of employees’ benefit plans

Special Coverages Unique to Your Needs

The liability risks unique to your operations or industry may require special coverages like:

  • Umbrella liability insurance expands your protection beyond the limits of underlying policies like general liability
  • Errors and Omissions liability coverage for accusations of substandard work or wrong advice by your professional services to the clients
  • Directors and Officers Liability Insurance (D&O) to cover executive or management team against claims of wrongful acts committed in their official capacity

Contact Burton A. Harris Insurance Agency for an All-Inclusive  BOP

Your business liability & property insurance may not always cover all your requirements. To close any coverage gaps, contact our experts at Burton A. Harris Insurance Agency.