Business owner’s policy for professional services businesses

A business owner’s policy is the best defense against common risks in the professional services industry. By combining general liability insurance and commercial property insurance, this policy shields against third-party lawsuits and property damage. Plus, a BOP often costs less than if the two policies were purchased separately. 

A business owner’s policy safeguards against:

• Customer injury / property damage lawsuits
• Advertising injuries, such as slander and libel
• Damage to your business property

Business owners can customize a BOP to meet their particular needs. Travel agents and recruiters may want to add cyber liability insurance to protect sensitive customer data, while business interruption insurance can provide valuable protection for any business. Plus, professional services businesses can often bundle professional liability insurance with a BOP for additional savings.

Small, low-risk businesses typically qualify for a BOP, including:

• Public speakers
• Tutors who have just a few employees
• Professional organizers working on small home projects

Talk to a licensed Insureon agent to learn whether your business is eligible for a BOP.

A BOP typically includes commercial property insurance that protects:

• Business equipment, such as laptops
• Office furnishings 
• Your building if you own it

A business owner’s policy offers flexibility. In addition to compensating you for vandalism, theft, or weather damage, it can also provide property protection for incidents that begin outside of your office. This includes a fire that spreads to your place of business.

The general liability portion of a business owner’s policy can pay for legal bills and other expenses related to customer injuries or property damage. For example, it can offer coverage in the following situations:

• A customer trips and breaks an arm at your law firm
• One of your tutors spills soda on a client’s laptop
• A delivery person slips on an icy step at a travel agency

The general liability portion of a BOP also offers coverage against accidental advertising injuries. This includes:

• Libel (written defamation) and slander (spoken defamation)
• Copyright infringement

For example, if an author makes false, damaging statements in an ebook and your publishing business is sued for libel, general liability insurance could help pay the resulting legal costs.

A temporary closure can cause lasting financial damage. Business interruption insurance shields you from lost revenue and other expenses related to closure caused by a covered loss.

For example, your medical billing office may need to close after a fire until its renovation is complete. Business interruption insurance would cover lost profits and normal operating expenses. That means you can still pay your employees and stay financially viable during the interruption.

A business owner’s policy protects against many common risks of professional service businesses, but it doesn’t provide coverage for every situation. Business owners should also consider:

Professional liability insurance: This policy can help pay legal expenses related to work performance, such as a travel agent sued for booking the wrong dates. It's also called errors and omissions insurance (E&O).

Workers’ compensation insurance: Required in nearly every state for professional services businesses that have employees, workers’ comp can cover medical costs after a work injury.

Commercial auto insurance: Business-owned vehicles must be covered by a commercial auto policy, which covers costs if your vehicle is involved in an accident.

Cyber liability insurance: This policy would pay for notification expenses and other recovery costs if your business suffered a data breach that exposed client information.

General liability insurance: A standalone general liability policy provides businesses with financial protection against customer injuries and property damage.

Are you ready to safeguard your professional services business with a business owner’s policy or another type of insurance? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.