Business Insurance Basics

For the life of your business

Business/Commercial Insurance Basics

Glad to have everyone here on our Facebook Live Event here with the Dave Richest Agency - Nationwide Insurance. Where can you contact us? Always at (208) 232-(DAVE) 3282. Or you can go to the website.  It’s a place where you can go and find all types of insurance that Nationwide sells; including Business insurance or Commercial insurance. Let’s talk some basics and what it means to business owners out there like you and me.

Whether you have a home-based business or a storefront location, or you’re a contractor that works out of your home, a lot of times you need commercial liability coverage. What does that mean? You may have a license that requires it, or a rental agreement with a piece of commercial property and the landlord may require it. What do you need to look for?

There are basically two types of packages or ways we can put this insurance together. The first one is the Business Owners Package, or BOP as we refer to it here in the business world. The next one is the Commercial Package Policy or CPP. What do these packages mean? Imagine you’re going to a restaurant where everything is a-la-carte. You order your protein, your starch, a salad and then dessert. You pay for everything separately - that is basically what a commercial package policy is. You can also go to a restaurant where they have a buffet and everything is included whether you want collard greens and chicken with a side of fries or the prime rib. That is what a business owner package is. However, not every business is not eligible for a BOP. You should talk to us to find out whether or not your business is eligible or if you just need a commercial package policy.

If you have a storefront location or an office, or if you have a retail store that sells clothes or electronics - you will probably qualify for the Business Owner Policy. If you’re a contractor like a plumber or a roofer or carpenter - you’re looking at a commercial package policy. So what is it that you really need to have in these business and commercial insurance policies?

First of all, you need to have at least have your business or commercial liability coverage. You wouldn’t want to do less than one million dollars per year. Especially if you have someone that gets hurt while on your property - you want to have at least a million. It will be 2 million dollars for the whole policy period. So always go with one million. The price difference between the base requirement of $300,000 to one million isn’t worth buying the base requirement.

The next thing is if you’re a renter and you rent your building or your office space you’re going to want to make sure that you have $300k/ten. legal liability. You may also want to look to see how much it would cost to replace the whole building should you cause the whole building to burn down. If the building is worth one million dollars and you have only $300k coverage you are going to be in some serious financial trouble.

Next, you have your business personal property or BPP. This is personal property that is limited to your office or your work location. This would include things such as your computers and desks, etc. So what does that mean for my contractors out there? If you have BPP coverage you better be doing all your work at your work location. If you take tools or other things away from your business, then you need to have what is called an Inland Marine Policy (it has nothing to do with boats). This will cover your business items that you take away from your office. Contractors you need to make sure that you have this type of policy.

There is a lot more we can go over and we will in the weeks ahead on Facebook Live - these are just some of the basics. Come to talk to us or call us at (208) 232-3282. Or visit us on the web and request a quote. Let us know. We would be happy to review your policy.  We can usually get you better coverage for the same price or we can get you the same coverage for less. We’ll see you next week on Facebook Live.