By Edward L. Blais, JD, CIC
President, Blais Insurance
New and
improving technology have changed the business landscape in multiple ways.
Besides the advent of streaming and ridesharing services, advancements in
technology have also allowed more people to take charge of their lives by
empowering them to become entrepreneurs. As individuals carve out new methods
to deliver a service, Blais Insurance encourages entrepreneurs to consider
working with an independent agent that can tailor a business owner’s policy
(BOP) to meet your specific needs.
President, Blais Insurance
It wasn’t
long ago when the average entrepreneur solely owned a convenience store or sold
merchandise online. Nowadays, accurately guessing their line of work can be a
complete coin toss. Through the aid of software that can be purchased at a local
department store or in the digital marketplace, motivated individuals can give
consulting services, provide fitness instructions, or deliver various types of
care services that were not possible within the last decade. More importantly,
each of these ‘gigs’ carry different risks that can significantly stunt any
dreams of being a successful entrepreneur.
Traditional
BOP insurance packages have not yet adapted to the changing business landscape.
The reason is because BOP insurance was originally designed with the thought
that business owners would remain fixed to one location, and that typically
meant that they could also rest assured knowing that their property was
completely protected. This protection would also extend to bodily injury claims
directly connected to an owner’s establishment.
Problems
with this approach are immediately apparent if you examine the types of
businesses people have launched in recent years. For example, fitness trainers
who provide lessons at multiple locations have different insurance needs than
individuals who own a gym. Another example might include individuals who are
managing a fleet of drivers through an app like Uber or Lyft.
Some
insurance professionals might recommend that these individuals acquire a
traditional BOP insurance package, but doing so might result in having
policyholders pay for more coverage than they need and for protection with
clear gaps in coverage. It is easier to understand this dilemma if you could
imagine a scenario where a yoga instructor is sued after a client is injured
during a routine exercise. These kinds of claims can be covered by tailoring
and complementing a business owner’s policy to create an insurance package that
is customized for the individual.
