Are you a small business owner who is concerned about where you will get your business insurance? Do you wonder how to optimize your coverage and still pay an affordable price? One of your solutions might be a business owners policy, also called a BOP.
BOPs are coverage designed with the needs of the small business in mind. They contain specialized protection and often offer quite a few cost benefits, too. Let’s take a deeper look at how they can help you both customize and optimize your business’s insurance portfolio.
What is a BOP?
If you run a small business, you probably don’t have unlimited financial resources to devote to your insurance needs. Plus, you likely do you have time to juggle a lot of different policies to try to get optimal protection. BOPs are packages of insurance coverage designed to help you address these concerns.
With a BOP, you can receive several types of coverage in one place. You'll also pay only one premium for these multiple benefits. Often, you can save money on the cumulative coverage provided by a BOP as opposed to paying for several separate policies.
What Coverage Does a BOP Offer?
With a BOP, you receive several of the most common types of insurance that all businesses need. Usually, these include:
- Property Insurance: Damage to your business’s property, such as buildings, stock, furnishings and machinery, will have coverage if it sustains unexpected damage. The policy will usually cover you in case of a variety of hazards like fires, theft, vandalism or bad weather.
- General Liability Coverage: If you cause a third party (who doesn’t work for your business) harm, this coverage can compensate them. If you damage a customer’s property, for example, then you can use this coverage to compensate them.
- Business Interruption Insurance: When the business sustains damage, you might have to temporarily halt operations. This coverage can help you replace lost income and cover overhead costs that arise during the closure.
You can also augment your BOP with various coverage endorsements. These might include coverage for cyber liabilities, errors & omissions or specialty possessions. Therefore, you'll receive more coverage within the parameters of this coverage package. Keep in mind, however, that you might have to buy other essential business insurance like commercial auto & workers’ compensation insurance separately.
Is a BOP Right For Me?
BOPs are not the right insurance solution for all businesses. Usually, businesses must meet certain qualifications to be able to enroll. Smaller businesses with few employees, lower payroll and lower liability risks are the ones that most benefit from BOPs. Larger businesses or those with higher liabilities might need other coverage. Your insurance agent is happy to help you determine whether a BOP is your insurance solution.
Also Read: Why does my business need commercial auto insurance?