What’s a Certificate of Insurance? It’s similar to an auto insurance ID card, but with one big difference. It summarizes your Business insurance coverage including basics like policy expiration date, individuals covered, and dollar amount of coverage. Some COIs also include the type of policy, such as professional or general liability. Instead of showing your long, multi-page policy to your client, you can simply pull out your COI to show you have coverage! Many business owners find that COIs also help to build confidence in their business.
Not all businesses will use a Certificate of Insurance as much as others. Most often, businesses that provide services with the potential for high liability losses will need to furnish proof of insurance. Any business or person that hires your company could require proof you can cover the cost of a claim. Whether its building a website or painting an office, any situation where an employee, customer, or other business could be hurt or lose money could require a COI. Many companies include it with any job proposals they submit, and it could even be a bidding process requirement. A COI could also give you an edge over competitors that don’t have the proper coverage.
BOP: Business Owners Policy
Our Agency knows that no two businesses are exactly alike, so Farmers offers customizable policies! Our Business Owners Policy (BOP) combines your property and liability coverages into one, single policy! We’ll help you fine tune your policy and decide which optional endorsements best fit your business’s needs. The cost of a BOP is influenced by two factors: the underwriting assessment of the business’s risk and the coverage level you choose.
Also, remember, a BOP is not a substitute for personal insurance policies! If you’re found liable for an injury or accident, that person can file a lawsuit that could target your assets. Without appropriate Home, Auto, and Umbrella policies, your business could still be at risk. So, plan your coverage accordingly!
Here are the main components to choose from when building your commercial insurance policy:
- Property – Coverage for buildings, property, inventory or income.
- Liability – Covers situations ranging from customer injuries to wrongful termination.
- Crime – Protects again employee or third-party theft.
- Auto – Covers vehicles your own, lease, or rent for business purposes.
- Workers’ Compensation – Assistance for employees in the event of injury or illness while on the job.
- Umbrella – Additional liability coverage on top of your underlying policy.
- Loss Control – Services to help you increase on-the-job safety & efficiency
Looking for even more industry-specific options? Click here to review our handy “cheat sheets” for industries like commercial real estate, manufacturing, non-profits, and more!