It’s one thing to close our businesses for exciting renovations and a grand reopening, but it’s another thing to be forced to close up shop due to unwelcome events such as natural disasters. This year, the country has seen several natural disasters affect entire communities including businesses. As we’ve seen, hurricanes, fires and earthquakes don’t discriminate when choosing potential victims. It’s our responsibility as business owners to protect our businesses in order to minimize loss and ensure a bright future after unforeseen hard times.
All for One and One for All: BOP
Business Owners Policy Insurance (BOP) provides several types of protection under one policy. This type of insurance coverage works great for many small to midsize businesses because it bundles the following three types of valuable coverages under the same policy.
Property Insurance— Commercial Property Insurance covers buildings and its contents. So, if your print shop were to suffer a loss to due to a massive storm that ripped through your roof, not only would structural damage to your building be covered but so would your printers, computers and other supplies in the building up to the limits set on the policy. Replacing damaged equipment and materials can be extremely costly and BOP Insurance helps mitigate those costs so you’re up and running as soon as possible.
Business Interruption Insurance— The floods have subsided and repairs to the business are underway but your business is still not operational. This scenario would typically cause huge financial stress, but with Business Interruption Insurance you’ll be covered for lost income and possibly the cost you incur for operating in a temporary location. For years, this type of insurance has helped keep the lights on at home when the income you typically count on from your business is not flowing in.
Liability Protection— Say your business is fulfilling a work order at the moment a disaster hits. In such a case, you may be liable for damage or injury to others as a result of faulty (or incomplete) work, products or services. With business liability coverage, you and your business will have another level of protection that is essential for surviving a natural disaster.
Umbrella Insurance: Coverage for the Perfect Storm
There are times when it’s one thing after another and relentless waves of unfortunate events come at your business. In these situations, having Umbrella Insurance to supplement your coverage can really pay off. When your business suffers a loss, Umbrella Insurance will cover the remaining balances after the underlying limits of your base policies have been exhausted. Having this type of coverage could really save your business from falling into debt or even closing down after a catastrophic loss.
None of us enjoy facing tough times in business. However, there are two positive things we can do when faced with challenges: we can prepare ourselves to the best of our abilities and we can learn from mistakes. Remember that when natural disasters affect businesses, chances are that ordinary citizens are also affected. In events like the recent disasters in Texas, Florida, and Puerto Rico, not only were small and midsize businesses affected, but also the owners, managers and employees who operate them. As a business owner, you not only have the pressure and responsibility of looking after your business assets but also guarding your family and personal property. Seek to educate yourself on the various personal lines of insurance that can protect your home. It will be one less burden on your shoulders.
AIS professionals are experts in building a protection around your home and business that will prove invaluable to you. Specialized teams for personal lines and business insurance will help you select the coverages that best fit your needs, all from top insurance providers.
This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms, and coverage in a given policy may be different from those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.