There's no denying that a business's success depends on the hard work of its team, but one disaster can wipe out all of your hard work and make your profits disappear. So, if you don't want this to happen, you need to insure your business, no matter how big or small it is.
There are insurance companies with policies that cover all major property and liability risks in one package. You can also choose to have your own insurance. A business owners' policy is this kind of insurance (BOP). A commercial package policy can be bought by a bigger business.
BOPs cover the buildings and equipment that the company owns with property insurance. Business Interruption Insurance can pay for lost income caused by things like fires that stop a business from running.
There are liabilities, which cover the company's legal responsibility for any harm it may cause to others. It's because your company didn't run its business as it should have. It can also mean injuries to people or damage to property caused by bad products, bad installations, or mistakes in services.
But BOPs don't cover professional liability, auto insurance, worker's compensation, health insurance, or insurance for people with disabilities. Professional services, vehicles, and employees all need their own set of rules. Most business insurance doesn't cover damage from floods, earthquakes, or terrorist attacks.
Protection from damage caused by floods.
If your office is in a flood zone, you should definitely get a policy that covers flood damage. Try to find out if the area has ever been flooded before. Make sure you do something before the loss to make up for it. If not, you might get into trouble.
Protection from damage caused by earthquakes
Most property insurance policies, like those for homeowners and business owners, don't cover earthquakes either. If you live in an area that has a lot of earthquakes, you can get a Special Earthquake Insurance Policy or a Commercial Property Earthquake Endorsement that will cover you. But the deductibles for earthquake policies are different.
Business Interruption Insurance pays you back for the money you lost while your business was closed. It only covers damage that is covered by your business property insurance policy. Businesses that lost money when they had to close because of the earthquake won't get their money back. To do it, you need to have a policy that covers earthquakes.
Protection Against Losses from Terrorist Attacks
In the US, businesses that pay extra for terrorism coverage are the only ones who are covered for any loss caused by terrorism. The Terrorism Risk Insurance Act of 2002 says that it has to be done. Still, there are some things that aren't covered by workers' compensation. For example, injuries and deaths caused by acts of terrorism aren't covered.
