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Getting Small Businesses Risk-Ready

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National Small Business Week, which takes place May 5-11, recognizes the critical contributions of America’s entrepreneurs and small business owners. More than half of Americans either own or work for a small business, creating about two out of every three new jobs in the U.S. each year. The Small Business Administration (SBA) during this week takes the opportunity to highlight the impact of outstanding entrepreneurs, small business owners, and others from all 50 states and U.S. territories.

Of course, while these entrepreneurs are busy growing their small businesses, creating jobs, driving innovation, and enhancing America’s global competitiveness, they also face many day-to-day risks – making the need for insurance protection essential in a business owner’s short and long-term success. The Business Owners Policy (BOP) was created to provide small business owners in certain industry segments the ability to protect their assets against bodily injury and property damage losses and their property (building, business personal property, equipment, inventory) against physical damage. A BOP combines Liability and Property insurance (along with Business Interruption) in one single policy, making it more cost-effective than purchasing separate policies. What’s more, the policy can be modified to the needs of the business to address the coverage requirements depending on its industry segment, location and other factors. In addition, a BOP can be enhanced to include additional coverages to respond to a specific business’s unique exposures. This includes adding:

  • Cyber Liability
  • Inland Marine
  • Equipment Breakdown
  • Water Back-up & Sump Overflow
  • Accounts Receivable
  • Crime
  • Employment Practices Liability (EPLI)
  • Among Others 

If a business is in the professional services industry, such as an attorney, accountant or a manufacturing firm that offers design services, a Professional Liability policy should be purchased, which is typically not available with the BOP. Commercial Auto and Workers’ Compensation insurance are also not included in the BOP, with separate policies required.


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