In business, risk is inevitable. But while many business owners are prepared to take strategic risks, far fewer are prepared for the financial consequences of unexpected setbacks. Whether it’s a fire that damages your property, or a patient who slips and falls in your office, the costs of these incidents can quickly spiral beyond what a business can afford. This is where business insurance becomes essential.
At Unity Insurance, we work closely with businesses of all sizes to help them understand what’s at stake. Let’s take a closer look at the types of business insurance and the real cost of operating without them…
Business Owners Policy (BOP)
A Business Owners Policy or “BOP” is the quintessential protection that every small business should obtain. A BOP, is a package of various insurance coverages that provide comprehensive coverage specific for the risk that your business or practice has. In most cases, a BOP contains 2 major components – Commercial General Liability and Property coverage.
1. Commercial General Liability (CGL)
Commercial General Liability or (CGL), often considered the backbone of a business insurance policy, is a type of business insurance that protects your company from a variety of common liability risks. Some of the common coverages include:
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Bodily Injury – Covers medical costs, legal fees, and damages if someone (not an employee) is injured on your business premises or due to your operations. Example: A customer slips and falls in your office.
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Property Damage – Covers damage your business causes to someone else’s property.
Example: A contractor accidentally breaks a client’s window while working on-site. -
Personal and Advertising Injury – Includes coverage for things like libel, slander, copyright infringement, or false advertising.
Example: You’re sued for using a competitor’s tagline in your marketing. -
Legal Defense and Settlements – Pays for legal defense costs and any settlements or judgments (up to the policy limits), even if the lawsuit is groundless.
2. Property Coverage
The Property Coverage portion protects your physical assets or contents of the business in the event of unusual events like fire, theft, vandalism etc… Some of the common coverages include:
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Buildings – If you own the building, it covers the structure itself, including walls, roof, fixtures, flooring, HVAC, etc.
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Business Personal Property (BPP) – Covers contents like furniture, office equipment, computers, inventory, or improvements you’ve made to a rented space.
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Outdoor Property – Limited coverage for signs, fences, and landscaping.
Add-Ons or Endorsements
The specific range of coverage for these risks are dependent upon the carrier, but in most cases there is either limited coverage or the option to add coverages that cover other common business risks. Some of these include:
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Equipment Breakdown – Covers the cost to repair or replace essential equipment that breaks down due to mechanical failure, power surges, or operator error.
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Business Income/Interruption – Reimburses lost income and operating expenses if your business can’t operate due to covered property damage.
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Cyber Coverage – Protects against financial losses from data breaches, cyberattacks, or other digital threats. This also provides coverage for costs related to reputational mitigation due to a cyber breach.Standalone policy recommended.
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Spoilage – Covers the value of perishable goods that are lost due to power outages, equipment failure, or temperature fluctuations. This includes vaccinations, antibiotics, and other medications.
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Commercial Auto Insurance – Covers vehicles used for business purposes in case of accidents, property damage, or injuries involving your company’s cars or drivers.
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EPLI Insurance – Covers your business against claims made by patients, visitors, or employees (or former employees) alleging discrimination, harassment, wrongful termination, retaliation, or other employment-related issues. Standalone policy recommended.
While the add-ons provide a cost-efficient option to provide some limited coverage for these expanded exposures, in most cases a separate standalone policy is recommended for full protection. In addition Cyber and EPLI policies, some of the other common stand alone business insurance policies include:
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Errors & Omissions (E&O) Insurance – Protects professionals and businesses against claims of negligence, mistakes, or failure to perform services that result in a client’s financial loss.
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Workers’ Compensation Insurance – Covers medical costs and lost wages for employees who suffer job-related injuries or illnesses. Sometimes this is legally required
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Directors & Officers (D&O) Insurance – Protects company executives and board members from personal losses if they are sued for decisions made in their corporate roles.
The Fallout of Operating without Business Insurance
Natural disasters and accidents can result in intended harm to patients as well as employees, and may result in massive replacement/repair costs. Having Business Insurance gives a small business or medical practice protection and peace of mind. Not purchasing any sort of business insurance can lead to out of pocket costs for restoring inventory, replacing assets, and liability lawsuits. In many cases, just the defense of the cases can exceed tens of thousands of dollars, before any payouts are even assigned.
The intangible impact of not having business insurance can be just as damaging as financial loss. A single incident—whether a lawsuit, data breach, or service disruption—can harm your reputation, eroding the trust you’ve built with patients and the broader community. In healthcare especially, even the perception of risk or negligence can deter patients from returning or recommending your practice, ultimately affecting long-term success.
There are only a few insurance coverages in Maryland that a small business or medical practice is required to have. Workers Compensation is one of these if the business has multiple employees. If an employee is injured on the job and the business doesn’t carry workers’ compensation insurance, the employer could be held personally liable for medical bills, rehabilitation, and lost wages. In addition, the employer could result in heavy fines, lawsuits, and in some cases, criminal charges.
Some of the coverages that may seem “optional” still require the business owner to notify patients when that coverage isn’t in place. That can further damage the reputation of the practice. Likewise, it is important to know how not having any of these coverages can impact other parts of your business.
For example, many lending companies require a certain amount of liability or property coverage in order to protect their own interest. If it is discovered that a borrower is not maintaining any or the appropriate amount of coverage in certain areas, they have the right of subrogation. This means they have the right to take out their own insurance policy on your business and property which typically is exponentially more expensive than typically business policies.
Protect Your Business the Smart Way
The cost of business insurance varies depending on your size and coverage needs. But in almost every case, the price of coverage pales in comparison to the cost of going without it.
At Unity Insurance, we tailor policies to fit your unique business risks, our team is here to guide you through the coverage options that make sense for your operations, budget, and long-term goals.
Unity’s insurance professionals serve as your advocate from the very beginning. From selecting coverage to filing a claim, we are by your side every step of the way. At Unity Insurance, we know insurance plays a vital role in every stage of your life and business so our professionals provide guidance and support to ensure you make the right decisions regarding your insurance options.
If you need assistance with business insurance, medical office insurance, or employee benefits, our team is here to help. Contact us at 410-539-6642 to schedule a policy review today!