There are many things to think about when you are opening a small business in Bronx NY area? One of the most important items that you need to obtain as a small business owner is the right type of small business insurance coverage in Bronx NY.  You want to protect yourself in case of an accident or a fire.  If you have employees, New York State mandates that you have worker’s compensation insurance and disability insurance.

The most common type of insurance policy for small businesses located in the Bronx is the Business Owner’s Policy otherwise known as a BOP.  A BOP usually combines Property Insurance and General Liability Insurance at a lower cost than if you were to purchase them separately.

Property Insurance covers the damage to your building and property caused by a fire including your inventory, furnishings, computers and other items that are located at your business. General Liability Insurance will cover you if your small business is sued for causing harm to a person or property.  For example, if a person was to fall inside your office, and they break their ankle, they could sue the business for thousands of dollars.  General Liability Insurance should cover the cost of the legal fees and the monetary settlement that you will owe the injured party.

Many landlords in the Bronx and the rest of New York City will require that a small business have at least General Liability Insurance.  The landlord usually wants to be named as an additional insured on the policy.  This will protect the landlord in case someone gets hurt in your business and wants to sue not only you but the building owner.

An important coverage that can be included in a BOP is Business Interruption Insurance.  This is part of the Property Section of the policy and it will cover you for lost income if your company cannot operate in its current location due to a fire or other hazard covered under your policy. Business interruption insurance covers the revenue you would have earned if the fire had not occurred.  The payout is usually based on the business’s bookkeeping records. Business Interruption can also cover operating expenses such as the heating and electricity bills.

Raising or lowering the deductible can affect the price of the small business insurance policy.  The deductible is the amount that you will have to pay before the insurance kicks in.  While the premium may be lower with a higher deductible, you want to make sure that you have the money available to pay it in case of a loss.

Some other types of insurance that a small business may need include Professional Liability if you are a licensed individual such as a real estate broker, architect or lawyer.   Employment Practices Liability is important if you have employees. This insurance covers wrongful acts arising from the employment process such as discrimination, wrongful termination, sexual harassment and retaliation.

If you are planning to open a small business in the Bronx or anywhere else in New York, then you should definitely speak with an insurance expert.  IGM Brokerage Corporation will explain all the different types of insurance coverages that your business may need and find you a competitive quote.