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Property and Liability Insurance

Why You Need It
A major fire at your worksite or even a minor fall by a visitor can have a devastating impact on your business. So how can you protect your small business from big financial losses? You can start with two critical kinds of commercial insurance that are often packaged together in a Business Owner's Policy (BOP): property insurance and liability insurance.

What Property Insurance Is
Property insurance covers your physical assets: your building, equipment, furnishings, fixtures, inventory, computers, valuable papers, records, and more. But property insurance can also provide income if your business is forced to suspend operations after a covered loss. For example, if your building is destroyed or damaged in a fire, you may not only be covered for that property loss, you may also be able to collect income while you're regrouping.

What Liability Insurance Is
Business liability insurance is specifically designed to protect your business assets if your company is sued for something it did or even didn't do that resulted in bodily injury or property damage to someone else. For example, a liability insurance policy may cover expenses if someone claims to be injured by a product you sell…or it can pay for defense costs if a competitor sues you for trademark infringement.

How Liability and Property Insurance Work
Many insurance providers bundle the primary property and liability insurance coverages you need into an economically priced business owner's policy. You can then tailor your insurance package by extending the coverage limits in specific areas or adding options to cover risks that are inherent to your industry.