What Kind Of Insurance Policy Should I Get As A Foreign Business Owner In The US?

What Kind Of Insurance Policy Should I Get As A Foreign Business Owner In The US?

A majority of foreign business owners find it difficult to find the right kind of insurance for their operations in the US. Rest assured, finding the right insurance policy is not as difficult as it may seem, as long as you know your operations inside out. This will actually help you make a better decision but if you are still not certain, here are a few insurance policies you should consider:

BOP (Business Owner’s Policy)

The business owner’s policy effectively covers your operations. There are a number of packages to choose from and they often include property insurance, liability insurance, interruption insurance and crime insurance as well. However, you can alter the policy according to your business’’ needs and requirements to cut costs and save money. But then again, by choosing a BOP you already are saving considerable money since it is a bundled coverage plan which costs less in comparison to the total amount you have to pay if you opt for a separate policy for each component of your business.

General Liability Insurance

Regardless of the size of your business, an insurance plan is a legal requirement. Having liability insurance is necessary rather than a luxury and it protects you and your business from products or services that may have caused property damage or bodily injury to a third party.

Professional Liability Insurance

This type of coverage is also popularly known as ‘Errors and Omissions Insurance’. The policy is perfect for businesses that wish to protect itself from damages for failing to provide professional services. It also covers businesses if the services rendered were improper. The general liability insurance plan does not actually cover this aspect. This makes it important for you to understand the difference between the two as they seem quite similar. This insurance coverage is applicable for any and all professional firms but not limited to accountants, notaries, hair salons and lawyers.

Officers and Directors Insurance

As the name implies, the insurance plan is primarily used as coverage for officers and directors specifically. This means the business in question is protected from the actions of such individuals especially if they are responsible for affecting the operations and profitability of the business. Moreover, it also protects the business if an insured individual is in a legal situation. Essentially, the coverage covers damages and costs incurred due to lawsuits.

Commercial Auto Insurance

Commercial auto insurance is perfect for businesses looking for a coverage that protects the company’s vehicles. This includes vehicles that carry equipment, employees and products. With an insurance plan, you can not only insure trucks and vans but SUVs and cars from damages due to collisions. On the other hand, if you business does not own any company vehicles, and your employees have their own vehicles, then in this case you should consider taking advantage of the non-owned auto liability which protects the business in case the employee does not have adequate coverage or none at all.

That being said, you have everything you need in order to get started and for you to make an informed decision. However, enough emphasis cannot be placed on the fact that you will need to do your homework to make sure the specific coverage plan you are already considering is actually worth the cost in the long run.

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