Most businesses in Richmond, VT, regardless of what industry they’re in, face a host of potential risks. Exactly what perils a business is exposed to may vary, but almost all businesses in the area need to insure themselves against at least a few perils. Both business owners policies and commercial package policies offer businesses multiple coverages and protections. Whether a business owners policy or a commercial package policy is better for a particular business depends on precisely what risks that business faces.

Business Owners Policy Richmond, VT

Is a Business Owners Policy or a Commercial Package Policy Right for Your Richmond, VT Business

Small and Medium Businesses May Want a Business Owners Policy

Business owners policies are package policies that include several coverages most businesses need. Most BOP insurance policies provide the following coverages:

  • Commercial Property Coverage, which can usually be adjusted to cover both buildings and equipment as necessary
  • General Liability Coverage, which helps pay legal fees and settlements associated with covered liability lawsuits
  • Business Interruption Coverage, which might provide supplemental income if a covered disaster directly causes a decrease in revenue
  • Cyber Liability Coverage, which may cover expenses associated with data breaches

(Cyber liability coverage isn’t as common as the other three coverages, but it’s becoming more popular as businesses face more and more cyber threats).

Business Owners Policy Richmond, VT

BOP insurance typically doesn’t include commercial auto insuranceprofessional liability insuranceworkers compensation insurance, health insurance or disability insurance, because not all businesses need these kinds of insurance.

Since BOP insurance generally only includes basic coverages, it’s typically most useful for small and medium businesses that have few insurance needs. Businesses that only want these coverages may be happy with just BOP insurance. Even businesses that need just one or two additional protections, such as workers compensation insurance and commercial auto insurance, might find that a BOP plus one or two stand-alone policies are sufficient for them.

Larger Businesses May Want a Commercial Package Policy

Like business owners policies, commercial package policies also offer multiple coverages. The coverages that are available through commercial package policies, however, are more varied. In addition to the four main coverages that most business owners policies make available, commercial package policies might also include:

  • Commercial Auto Coverage or Fleet Insurance, which may cover vehicles that a business owns or employee vehicles that are used for work
  • Equipment Breakdown Coverage, which might cover losses caused by certain types of equipment malfunctions
  • Employment Practices Liability Coverage, which generally covers employment-related lawsuits
  • Inland Marine Coverage, which could cover equipment and products when they’re being transported
  • Pollution Coverage, which is sometimes appropriate if a business uses chemicals
Business Owners Policy Richmond, VT

Workers compensation insurance, health insurance, and disability insurance are still generally purchased as stand-alone policies, apart from commercial package policies.

Because commercial package policies offer more coverage options, they’re generally appropriate for businesses that have more insurance needs. Businesses that opt for commercial package policies tend to be larger companies and ones that are exposed to specific risks. For instance, a landscaping service based in Richmond, VT that has locations throughout the state might want a commercial package policy that includes commercial auto coverage, employment practices liability coverage, inland marine coverage, and pollution coverage. These usually aren’t available through a business owners policy.

Find Out Which Type of Insurance is Right for Your Richmond, VT Business

To find out whether a business owners policy or commercial package policy is better for your business in Richmond, Vermont, contact an independent insurance agent in the area. A knowledgeable agent will be able to help you assess your business’ risk exposure and determine which coverages you should look for in a commercial package policy. The coverages your business needs will determine which type of package policy it should have.