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Get to Know Insurance: Business Insurance Part Three


This week we are concluding our Get to Know Insurance: Business Insurance installment. We’ve previously gone over numerous coverage types; commercial property, crime, cyber liability, workers compensation, liability and business auto. This week we will be briefly going over the various options that businesses have when buying policies. The options available depend, to some extent, what kind of business you own and how large the business is.

The first option is called a monoline policy. This type of policy only covers one part of a business, whether its business auto, liability, property etc. A business owner may choose to buy a monoline policy for many reasons, but the most common ones are; the insurance carrier they get their package from doesn’t offer a type of coverage they need, they have to buy the policy from a non-standard or surplus lines insurer due to previous losses or they are able to find a policy with a much lower premium than their package carrier can offer.

The next option for businesses, which is the most common, is a package policy. This policy is actually made up of numerous policies but grouped into one for billing purposes. A package policy allows a business owner to cover all, or most, aspects of their business and pay one bill rather than a bill for each coverage. The simplicity of this option makes it the most popular. Many insurance carriers have worked very hard to offer package policies, but each carrier has its preferred industries and markets, so you’ll want to consult with an agent to make sure they have access to the market that is best for you.

The BOP, or business owner’s policy, is a great option for small to medium sized businesses. This is similar to a package policy however, there are some things a BOP wont cover. What a BOP does cover is property, buildings and contents owned by the company, business interruption insurance which will cover the loss of income resulting from a fire or other catastrophe that disrupts the operation of the business, and liability is also included in the BOP covering your company’s legal responsibility for the hard it may cause to others.

A BOP does no cover professional liability, auto insurance, workers compensation or health and disability insurance, which many businesses need. This is where a monoline policy can come in to help, a business owner could buy a BOP and monoline policies for workers compensation and health insurance. Workers compensation is not offered by many of the insurance companies that offer package policies and business owners can usually find lower premiums when purchased from a state risk retention program for businesses operating in that state.

As you have read over the last few weeks, businesses can have very unique, different and challenging insurance needs. There are numerous factors that go into covering a business from all forms of risk and potential losses. The best way to make sure your business is adequately covered is to meet with your agent so you can not only go over your policies but also educate them on your businesses operations, so they can use that knowledge to help determine if the coverage you have doesn’t leave you exposed.

HD Insurance has been insuring businesses of all types for over 25 years. During that time, we’ve learned a lot about the insurance needs of the various businesses we’ve worked with. What we’ve learned has allowed us to create relationships with insurance companies that prefer working with a wide variety of businesses, use our experience and knowledge to shorten the application process and tailor our services to best meet the needs of our clients.

Thanks for reading the first part of Get to Know Insurance! Next week we will start the nonprofit insurance portion of our weekly series and are very excited to share our knowledge with you!

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