Do Businesses Need To Keep Their Insurance Permanently?

Businesses are vulnerable to a lot of property damages, liability claims, and income losses. Consequently, business owners tend to shoulder all the costly expenses by paying out of pocket. That could be financially challenging, especially for small companies. Nevertheless, it can be prevented by keeping your business insurance in-tact which may cover all those expenses for you.

What Kind of Insurance Do Small Businesses Need To Maintain?
The recommended insurance for small companies to keep is the business owner’s policy. It is an umbrella term that refers to insurance that covers all essential components in a business-like property, liabilities, and income losses.

Furthermore, specific insurance can also be tailored just for you, depending on the specific risks or conditions present at the workplace.

What is Business Owners Policy (BOP)?
A business owner’s policy is a kind of insurance policy (or policies) that is specially packaged to fit the needs of a small company. To be considered eligible, the business must meet the common requirements:

• It must be located in a small office
• It must have less than 100 employees
• It should earn a revenue of less than $1 Million per year
• It should operate in a low-risk industry

Listed below are the descriptions of the business insurance included in a business owner’s policy:

1. Business Property Insurance
   This part generally protects the building and other commercial properties from damages. It includes costs for reconstruction, repairs, and replacement of properties based on their depreciated value.
   
   
2. Business Liability Insurance
   It covers medical reimbursements and legal expenses. It will be applicable in cases wherein businesses are being held accountable for incidents occurring within premises.
   
   
3. Business Income Insurance
   Also known as Business Interruption Insurance, this covers the business from loss of revenue in cases of a temporary business closure.

Is Business Insurance Always Needed?
Having business insurance is not required. However, It may still be necessary if you think you are in a high-risk business. So either you will choose to shoulder all those expenses or let the insurance company supply them for you.

At Rollo Insurance, we do our best to ensure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (512) 894-9742 or Click Here to request a free quote.