Agent Business Insurance: Key Details about Your Business Owner's Policy
As an insurance agent, you know how important insurance is to a solid business protection plan. With a Business Owner's Policy in force, you give your business more freedom to take calculated risks in order to grow your company. Here are a few of the common claims your business may face and how your BOP steps in to shield your business.
Property Claims: Insurance Agents and Agencies
The modern business world runs online, and your insurance agency is likely no exception. So when a disaster destroys your business essentials or a thief robs you of your laptops, computers, and tablets, you don't have time to spare when it comes to finding replacement equipment. In a covered event, your BOP compensates your business for your property, giving you the funds to replace tablets and computers or repair your office space. Typically, covered claims include damage wrought by a fire, tornado, or a robbery. Sometimes, these policies will also cover damage due to vandalism. Though sometimes you will have the option to cover your property based on its current value or its replacement value, many policies tend to offer the latter coverage. That way, if your business suffers a loss, you will have the funds to replace your items with new gear.
For agents who rent office space, the Property Insurance portion of your BOP can meet the coverage requirements your lease specifies. If a tornado wreaks havoc on your office building, your BOP will kick in the cost of repairs to your space, and can even cover its furnishings, fixtures, and more, depending on your policy.
Physical Damage / Third Party Liability Claims in the BOP
When you open your office to clients and visitors, you also invite an added risk exposure. That's why General Liability Insurance is a foundational policy for any business that deals with others on a daily basis. The General Liability portion of your BOP protects your business if someone is to suffer an injury or property damage on your premises. For example, if a visitor trips over a stray cord in your office and breaks a bone, they could sue your business for medical expenses. When that happens, your General Liability coverage covers the cost of your legal defense, settlements or judgments, medical expenses, and more.
If you advertise your services, you may also be exposed to non-physical injury claims, such as copyright or brand infringement, libel, or slander. Fortunately, your BOP can also cover those claims if your agency is sued. For protection against professional errors, though, you will need to purchase a separate policy altogether: Professional Liability coverage.
Business Interruption Insurance for Insurance Agents and Agencies
Disasters can keep your business closed while you attend to repairs or defend your company in court against a liability claim. Under the Property Insurance portion of your Business Owner's Policy, you may be able to add on business interruption insurance. Business interruption coverage can compensate your business for up to 12 months of income while your operations are on hold. This extra protection allows you to pay rent, payroll, and utilities while your business gets back in working order. To learn more about this option, contact an insureon agent.