Why Business Insurance is Important

Why Business Insurance is Important

June 28, 2021
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Transforming Risk into an Advantage with Business Insurance

No matter what industry you are in, your company faces risk every day.  That's why Travelers offers a wide range of business insurance options, designed to identify and reduce those risks.  Beyond managing claim costs, we help companies prepare for risk and recover faster after an unexpected event.  Managing the total cost of risk creates a competitive advantage, helping you protect and grow your business.

 Why Business Insurance Is Important:

Business insurance coverage is critical to protecting your company from risks, including property loss and repairing or replacing property, such as after a fire, storm or theft. Business insurance can help cover the costs of legal claims made against your business and can help cover an injured worker's lost wages. Without insurance, a significant loss could be devastating to the livelihood of your business. Some states also require businesses hold certain types of insurance coverages in order to legally operate there.

Workers compensation insurance can help protect both you and your employees after a work-related injury. General liability insurance can help protect your company in the event that someone makes a claim against it. Management and professional liability insurance can help protect you from a range of risks, from Errors & Omissions to Cyber Risk.

For small businesses, a Business Owner's Policy, also known as BOP insurance, combines three critical coverages – Commercial General Liability, Commercial Property, and Business Income and Extra Expense coverage – into one convenient policy.

A Business Owner's Policy (BOP Insurance) can help safeguard your company from property damage, loss and lawsuits in the wake of unforeseen events.


A Business Owner's Policy builds in many specialized coverages your business needs; plus it offers an array of coverage options to further tailor your policy to your specific business.

The broad protection of a BOP includes:

Commercial General Liability Insurance
shields your business from covered claims and lawsuits that stem from your everyday business operations.

Commercial Property Insurance
helps protect the business property you own, lease or rent, including assets like your buildings, equipment, furniture, fixtures and inventory.

Business Income and Extra Expenses (BIEE)
provides coverage when your business shuts down temporarily due to a fire or other covered loss. It helps replace your income and covered expenses like rent, payroll and other financial responsibilities while your property is being repaired or replaced.

Who is it right for?

A BOP is built to protect many types of small businesses.

This includes:

  • Commercial Real Estate
  • Contractors
  • Financial Services
  • Garages
  • Healthcare
  • Manufacturers
  • Personal Care Services
  • Pet Care Services
  • Printers and Publishers
  • Religious and Cultural Organizations
  • Restaurant and Food Service
  • Retail
  • Service Businesses
  • Technology Services
  • Wholesalers and Distributors

How much does it cost?

How much business insurance costs your business depends on a number of factors, including the specific types of insurance you need and the coverage limits you choose. These are determined by the specific risks your business faces, based on your industry, location, size and other attributes unique to the business you operate and its exposures. Operating overseas, for example, might indicate the need for international insurance to help cover foreign exposures. It's important to protect your company with business insurance coverage that reflects the risks and unique exposures that your organization faces. This is why it is important to engage an insurance professional with experience covering your business type to help you tailor a business insurance solution to your company.

Sources:

https://www.travelers.com/small-business-insurance/business-owners-policy 

https://www.travelers.com/business-insurance