One smart yet essential move an entrepreneur can make is choosing an insurance package to shield against significant financial losses. To do that, you need an agent that understands your company’s needs and unique risk profile. However, it also doesn’t hurt to know some basic terminology used to describe common business insurance options before you shop for your business owner policy.
Business Insurance Plans
While commercial insurance plans can vary widely, many can be grouped into two basic categories. A business owner policy usually includes a few key elements, with options tailored to address industry-specific risks. Generally, you’ll find liability and property insurance bundled into these policies, but some also include business interruption coverage. You may also expand your policies to include mobile property coverage, valuable papers and other types of business assets not covered under a standard BOP.
In contrast, a commercial package policy includes more than just liability and property insurance. A CPP allows you to select specific types of policies to be bundled together to make your custom-made package. Along with liability and property, you may opt for business auto, business interruption with extra expense, inland marine, equipment breakdown and many other types of products.
The Right Plan for Your Enterprise
Insurance is a major investment, but it’s a necessary part of your risk management strategy. Picking the right business owner policy takes a bit of work. Nevertheless, your agent can help by guiding you to the best package for your company.