By Satta Sarmah Hightower | Illustrations By Cornelia Li
Whether you dream of opening a floral shop, a photography studio or an architecture firm, insurance can serve as a risk protector to help safeguard what you’ve built. Here are some scenarios that demonstrate how customizing your insurance coverage through State Farm® can help protect your business when you need it most.
Property and liability coverage are also included within BOPs. Reid says business owners who lease space are often required to have a certain amount of liability insurance designated by their landlord. But even if the landlord doesn’t require it, it might be wise to have enough coverage to help protect yourself from loss due to events like customers slipping and falling on your property, Reid says. The amount of coverage you’ll need will depend on your business and its unique factors, such as the value of your business’ property and where it is located. A home-based business would need to cover things like business property, computers and software. Meanwhile, a business that owns the place where it operates—such as a florist that occupies a storefront in a building it owns—would need to consider building coverage in addition to property coverage. It’s important to remember that this coverage isn’t static. If the value of your property increases or if you expand your inventory, it may be time to contact your insurer and update the policy.
Property And Liability Coverage
Equipment is a major investment for many small business owners, and a business owner’s policy, or BOP, can help protect this kind of property and more. A BOP includes coverage for equipment damage that could occur when, for example, an electrical system failure fries a photographer’s studio equipment or an HVAC system breakdown temporarily shutters a restaurant. After a loss, you can file a claim with your insurer. During the claims process, you may need to provide a list of the damaged items, as well as photos and receipts to help your insurer determine the extent of the damage or loss. If your claim is covered, your insurer will pay to replace or repair the items up to your policy’s coverage limits. You also may receive compensation for lost income if you can’t use your equipment, says Natalie Reid, a State Farm agent based in Marietta, Georgia. You can customize a BOP based on your needs. If you’re opening a new photography business, for example, you may need less coverage in the beginning to cover your equipment. As the business grows and you purchase higher-end cameras and lighting gear, you’ll need to increase your policy limits to fully cover these assets. With the right level of coverage for your needs, you can be better positioned to recover and quickly begin serving clients again if your equipment is ever out of commission. Now, who’s ready for their close-up?
Equipment Coverage
