In some types of work, such as providing professional advice or services, the results of an error may not come to light until well after the project is completed. In that type of scenario, does an insurance policy cover the incident or not? Obviously, the answer to that question can mean the difference between avoiding a significant financial burden and having to figure out how to deal with a large, unexpected expense.

Companies must have adequate business insurance to protect them financially when unexpected incidents occur. A crucial component of an effective business insurance strategy is what’s called business owners insurance—also referred to as a business owners policy or BOP insurance. Having a BOP in place can help shield your company from the costs associated with many types of business risks. Here, we’ll walk you through this essential form of coverage and tell you exactly why it’s important for you to have business owners policy insurance as a part of your overall insurance strategy.

It’s a lot to ask of a contractor to be an expert in everything. That’s why it’s common for contractors to hire subcontractors (sometimes referred to as 1099 workers) to handle some of the tasks on projects. The subcontractor typically specializes in a specific kind of work and can complete it efficiently. That means the contractor can focus on other tasks. But this is key: Workers you subcontract work out have to have their own subcontractor’s liability insurance.

In order to be well-informed about business insurance, it’s important to understand the unique industry language. Below are some of the more common terms used by business insurance companies.

If your business owns or leases vehicles, you may wonder, “Do I need commercial auto insurance?” The answer is that you likely do need it and may be required to carry it. 

If you run a photography company, you understand that your business faces a wide variety of challenges and risks. From storms or accidents that damage expensive cameras and lighting equipment to clients who trip and injure themselves in your studio and sue you, it’s easy to find yourself with a large financial burden.

As a cosmetology business owner, you’re focused on providing excellent service to your clients. But at the same time, you have to address “big picture” issues, like protecting your business financially with insurance.

Construction businesses and contractors face a wide variety of risks at job sites and beyond. An incident can be very costly if they don’t protect themselves with adequate business insurance.

If you’re a transportation company owner or decision-maker, you surely do all you can to operate your business safely. However, companies like yours face many risks over which they have no control. Bad roads, inclement weather, and the people with whom your vehicles share the road probably come immediately to mind.