Small business owners have three ways to acquire the insurance protections their businesses need. They can purchase individual business insurance policies separately, purchase a business owners policy or purchase a commercial package policy. Each of these options has its own benefits and is right for a certain type of small business:
Purchasing Individual Policies Separately
Purchasing individual policies separately lets business owners select only the insurance policies they need. Business owners can hand-pick the types of coverage they want, regardless of whether they have other particular coverages.
The downside of purchasing policies separately is that it's more expensive to multiple policies this way because insurers don't offer multi-policy discounts when policies are bought separately. For the small business that only needs one policy, though, multi-policy discounts aren't a consideration.
Purchasing individual policies separately may be the best choice for sole proprietors who only need one type of insurance coverage. For example, writers who only want professional liability coverage might be best off buying it as a stand-alone policy.
Purchasing a Business Owners Policy
Purchasing a business owners policy provides basic insurance protections that many small businesses need. A typical business owners policy includes:
- General liability coverage
- Commercial property coverage
- Business interruption coverage
Some business owners policies also make cyber liability coverage or commercial auto coverage available. Not all business owners policies offer additional coverages like these, though. Also, business owners policies that do offer additional coverages typically only make a few additional coverages available.
By combining these common coverages together, business owners policies are able to give business owners big discounts on policies they need. In most cases, purchasing all of these protections through a business owners policy costs much less than buying each one separately would.
Business owners policies are good choices for businesses that have basic insurance needs. Offices, retailers, wholesalers and foodservice businesses might find all the protections they need in these policies.
Purchasing a Commercial Package Policy
Purchasing a commercial package policy offers business owners high flexibility and high affordability. These policies combine several coverages together, just like business owners policies do. By combining coverages, commercial package policies are able to save business owners money on their premiums.
The coverages that can be included in commercial package policies, however, extend well beyond what business owners policies offer. Most commercial package policies include the protections that are found in business owners policies, as well as a wide selection of optional coverages. Business owners are able to pick and choose from the optional coverages.
Commercial package policies are great for small businesses that either have many insurance needs or have unique needs. When a business needs lots of protections or uncommon coverage, the flexibility of a commercial package policy is especially beneficial.
Contact a company that offers commercial auto insurance for more information and assistance.