How A Business Owner Policy Protects
A business owner policy is a comprehensive insurance policy that is necessary to protect yourself from just about any type of liability situation. This type of insurance was designed to include the various coverages that are most commonly needed when providing services. Companies that go without this type of coverage can find themselves in precarious situations, often going out of business due to minor situations.
Several coverage options are included with this type of insurance. General liability, property, and vehicle coverage helps protect your company from various potential accidents. Interruption insurance provides income replacement if something should happen causing you to be unable to continue operations. For those in service industries such as engineering or architecture, the coverage is especially helpful in handling harm done due to omissions or design flaws.
This coverage is needed to protect the company from any type of liability. A lawsuit can be filed for any perceived wrong. In many cases, the issues were simply misunderstandings with no intended harm. However, these small, frivolous suits can easily cost hundreds of thousands to defend. Even when you are found to be not liable, the costs can still do severe financial damage to any company. Many companies find it easier to settle the suit instead of fighting it in court.
Any company that provides services to a customer base needs this type of coverage. Legal professionals, architects, and other service professionals find themselves needing to protect their growing business. The fact is that even the most careful professional can still find himself or herself subject to a lawsuit at any time.
Engineers and architects are particularly vulnerable to perceived liability. The services that these two professionals provide cannot always be measured like others. If a plumber is hired to replace a sink, the liability occurs if damage ensues or the sink is not properly replaced. The complexity of engineering and architectural work creates many areas where the service is done according to the needs presented. Later, the customer may reconsider and have expectations that are not met. Unfortunately, this perceived liability is not easy to defend.
Without this type of coverage, many contracts are lost. In many cases, a firm that does not have the proper coverage cannot bid for work. Especially for larger contracts and government contracts, the correct coverage may be the only thing preventing a firm from a successful bid.