Business Owners Policy (BOP)

+General Liability
The General Liability portion of the BOP policy responds to covered lawsuits alleging bodily injury, property damage, personal injury, and advertising injury arising from premises, operations, products, and completed operations of the small business owner.

This policy provides an attorney for legal defense and will pay up to the policy limits in the event of settlement or an adverse jury verdict. The General Liability policy covers the insured business itself and respective owners, directors, officers, employees and volunteers while acting within the scope of their official duties.

In addition to General Liability, some small businesses will need Professional Liability (Errors & Omissions) Insurance to cover certain types of lawsuits that arise out of the rendering of professional services.

+Professional Liability / Errors & Omissions Liability
The Professional Liability / Errors & Omissions Liability policy responds to covered lawsuits alleging certain wrongful acts, errors, or omissions arising out of the delivery of professional services for a fee.

Unlike the General Liability policy which covers a different type of lawsuit, the Professional Liability policy covers certain lawsuits alleging purely economic damages.

Such pure economic damages lawsuits occur when the injured party alleges that they have suffered a monetary loss due to failure of the small business to provide services in a timely fashion, failure to provide services according to generally accepted standards in the industry, or failure to perform services per the terms of the agreement.

+Property
The Property portion of the BOP policy responds to covered losses at specified locations to owned or leased buildings, machinery, equipment, inventory, supplies, and contents arising from perils such as fire, lighting, wind, hail, theft, vandalism, vehicle collision, etc.

The small business owner is normally reimbursed for property losses on a replacement cost basis. The Property portion should also provide coverage for the indirect loss of Business Income such as lost profits and continuing operating expenses which result when the business operations are shut down or diminished due to a covered direct loss to building or contents.

Special property extensions of the BOP may add Inland Marine, Crime, and other coverages for losses to property off premises, property in transit, computer equipment, valuable papers, employee dishonesty, forgery & alteration, money & securities, and other types of losses.

+Business Auto
Business Auto insurance covers owned, non owned, and hired autos for liability, uninsured motorists, underinsured motorists, comprehensive, and collision. Even if your small business does not own any vehicles, you still need Non Owned And Hired Auto Liability.

+Workers' Compensation
Workers’ Compensation insurance may be required by state law and provides benefits to employees and uninsured subcontractors who are injured on the job. The benefits include payment of medical bills, lost wages, lump sum awards for certain disabilities and disfigurements, and a death benefit.

Employers’ Liability coverage is included for those rare cases when an injured worker opts out of the workers’ compensation system. Even if you are not required by state law to carry Workers’ Compensation, it is still a good idea to do so for several reasons.

+Umbrella
An Umbrella policy provides additional limits of liability coverage in $1,000,000 increments to help to protect against catastrophic claims. The Umbrella policy extends the limits of the underlying General Liability, Business Auto, and Employers’ Liability policies. Umbrella insurance can be very inexpensive way to buy peace of mind against losing everything in a lawsuit.

Small Business Insurance Policy Types

Loftoninsurance_small businessThree basic types of small business insurance are necessary to protect your company: property, liability, and workers’ compensation insurance. You need to purchase workers’ compensation insurance if you have employees or hire contractors, because it is required by law in every state.

Small businesses can take advantage of a Business Owners Policy (BOP), which bundles together property and liability insurance for a reasonable rate. A BOP offers property coverage for standard risks, such as theft or fire. Some perils are usually excluded, including flood or earthquake damage.

The BOP will also cover costs for business interruption, including payroll. Last, it will pay to replace equipment, inventory, property, or other assets that are destroyed, damaged, or stolen.

Liability coverage provided with a BOP can be customized based on each company’s needs. Costs for claims made against the company are covered by liability insurance, including legal expenses, medical expenses for injuries, and property damage.

What you need to know

+all-risk coverage
If you select all-risk coverage, you may choose to add a broken-equipment clause to your policy. Many times, the expense of repairing or replacing equipment is the second-highest expense after those related to physical property and buildings or structures.

Whether your equipment is damaged by use, maintenance, or a perilous event, it would be covered by your commercial property policy.All-risk coverage will generally include any loss incurred if your property is burglarized.

If someone breaks into your property, not only are the stolen assets covered but also the damage caused by the break-in. An additional option is coverage for payroll and payroll transfers.

Commercial property insurance can cover goods in transit. When goods are in transit, there is a risk of accident or theft, which is why it is important to consider this coverage option.

This type of insurance can also provide coverage for any of your signage. Whether the sign itself is damaged or that sign damages any of your assets in the case of an accident, both repair and replacement expenses would be covered.

+Premiums
Premiums for business property insurance can be higher or lower depending on whether the insured chooses to receive the replacement funds for items lost or the actual cash value (ACV) of those assets. Replacement coverage pays the amount needed to repurchase any items at current market prices. ACV, however, will pay you only the depreciated value of the asset(s).

Commercial Property Insurance

loftoninsurance_business When you think of small business insurance, commercial property insurance may come to mind. Commercial property insurance can cover the value of your business property, equipment, inventory, and assets in case of damage, loss, or destruction. Exactly what is covered by your policy is up to you. There are several coverage options available for commercial property insurance.

You may choose to protect your property against damage resulting from only named perils, such as fire or flood. In this case, the insurance company will pay just for loss or damage incurred due to specific perils mentioned in the policy. In addition, it will pay for your loss of revenue and cost for business interruption due to this peril.

You may also elect to have all-risk, or broad, coverage. This type of policy is much more expensive, but it covers damage or loss for any cause unless it is specifically omitted within the policy terms. In any case, all-risk coverage also pays for lost revenue and interruption of business.

Protection

+lawsuits
Professional liability insurance is a type of small business insurance that protects against lawsuits related to your profession. If a claim is filed, the insurer must pay for the defense of the insured person.

The insurer may settle the claim out of court if the policy owner agrees. However, if it goes to court and a judgment is rendered, the insurer will pay for the judgment up to the amount set in the policy. If the insurance company refuses to pay a judgment for a valid claim, the policy owner can sue the insurance company for breach of contract.

+Professional Services
Professionals need professional liability insurance because a general liability insurance policy only covers personal injury, property damage, or advertising injury claims.

Professional services can lead to other types of claims, including negligence, inaccurate advice, misrepresentation, violation of faith, and unfair practices.

If an attorney fails to perform legal services with an adequate amount of skill, knowledge, and diligence, then his or her client could file a claim, which would then only be covered by professional liability insurance.

Professional liability insurance only covers claims made during the policy period. If a professional submits a claim related to an incident that occurred before the policy was purchased, that claim may not be covered.

However, if you cancel your policy and someone later files a claim against you for an incident or complaint that occurred while you held the policy, the insurance company may not cover it.

This is why it is important not to cancel your policy. If you happen to be sued after the fact and you have cancelled your policy, then you will be held liable as though you never had this policy.

Professional Liability Insurance

loftoninsurance_smallbusiness3 If you are a professional, such as an architect, physician, lawyer, accountant, home inspector, or engineer, you should consider obtaining a particular kind of small business insurance, known as professional liability insurance. This insurance, also known as “errors and omissions” or “professional indemnity insurance” protects professionals against lawsuits related to alleged errors, negligence, malpractice, and omissions.

For some professions, the law requires professional liability insurance coverage, in addition to general liability insurance.

Doctors and dentists must meet this requirement in many states. In other cases, clients may require that business owners and practitioners hold this insurance. For example, if you are a software developer, your employer may require you to have professional liability insurance.

Small Business Insurance Quotes

Loftoninsurance_smallbusiness2Now that you’ve done your homework, you realize that your business needs small business insurance. Now is the time to speak to The Daryl Lofton Insurance Agency and get a small business insurance quote.

This part of the process is crucial to the health of your company. Avoid the financial hardship that can occur if faced by a lawsuit without proper coverage by purchasing small business insurance to protect your employees, your business, and yourself. Daryl Lofton Insurance Agency has the ability to shop around to find the best rates.

When requesting a Business Insurance quote, you will need to provide information about your price limits, effective policy date, and any risks associated with your business in addition to basic information such as your name, contact information, and business name and addresses (both mailing and physical).

Other information needed is how long your business has been at its current location, how long you have been in business, and the nature of your business. If you own your building, you will need to provide the following information: its value, square footage, the year it was built, and whether any improvements were made.

Then, you will need to state the value of the contents of your business property and divulge whether any claims have been brought against your business.This information is needed to provide a quote for a package that is designed to meet your needs.

Remember, a quote is not a promise. Until you have actually signed a contract, the costs, coverage, and stipulations for each type of insurance could change.

Contact Us

The Daryl Lofton Insurance Agency

7195 Swinnea Road, Suite B,
Southaven, MS 38671

Phone: (662)253-8682

dlofton@loftoninsurance.net

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