No one can deny the fact that the success of any business is largely dependent on the effort the team puts into said business. However, a single disaster can wipe out the entire business. These unforeseen events are a part of most businesses, so it important that you learn to protect yourself for these business risk. Business insurance ensures that your business is protected against these disasters. Even if you are running a small company it is important that you get business insurance to protect the business from risk.

There are many insurance companies that offer business insurance to its customers. Some insurance companies offer protection to both business properties and liabilities in a single insurance package. However, if you wish to insure your assets and liabilities separately, you are free to do so. Insurance companies offer Business Owners Policy, or BOP, to business people to protect the assets of the business. Some large companies avoid taking BOP, but opt for commercial insurance packages to protect their business.

Insurance companies offering BOPs propose to protect the equipment and buildings owned by the company. You can take out Business Interruption Insurance to protect the business from loss due to disruption of business activity. Disruption of business activity could be due to fire, accidents or any other natural disaster.

Some insurance companies offer to cover the liabilities that may arise due to damage caused to a third party. Damages to a third party can prove to be fatal, as it may result in the closure of business operations. Damage to a third party can also be caused due to faulty or defective products, improper installation and substandard services.

A Business Owners Policy usually excludes certain important covers. Some important covers excluded are auto insurance, professional liabilities, health insurance, disability insurance and worker’s compensation. So it is important that you take separate policies to protect your business from these risks. Natural disasters, such as earthquakes and floods, are not covered under a standard Business Owners Policy. Also, if you want to protect yourself from damage due to terrorist attacks you need to take a separate business insurance policy as standard business insurance policies do not cover protection from loss due to these attacks.

Protecting your business against damage due to floods is important. If your business is located in an area that is prone to floods, then it will be prudent on your part to obtain a flood insurance policy. Try to find places that get damaged due to floods, and take adequate measures to protect the business from loss due to floods. Also make sure your insurance policy covers all items that are likely to get damaged due to floods.

Protection against damage due to earthquake is normally excluded in a Business Owners Policy. If you live in an earthquake prone area you will need a special earthquake insurance policy to protect the business from damage caused due to earthquake. Some people have the wrong impression that a business interruption policy will protect them from loss caused due to earthquakes. This will only reimburse you for the loss of interruption of business and not damage caused to business property.

Therefore it is important that you select a business insurance policy that covers all your business risks. If standard business policies do not cover all your risk, I suggest you obtain a tailormade business insurance policy that covers all your business risk.