Understanding Business Owners Policies (BOPs)
While it may sound surprising, the truth is that a BOP can protect your small business against a wide range of common risks. Business interruption, liability, burglary and fire losses can all be covered under a business owner’s policy.
What’s great about this type of policy is that it’s prepackaged, so this means that you can actually save a lot of money in the long run by considering it. If you’d like to get extra coverage then you can easily do so in the form of riders and endorsements.
It’s very important to be aware of the fact that a BOP is designed for the needs of medium and small sized businesses and eligibility depends on revenue. For example, if you’re a company that hires one hundred employees or fewer and you have revenue of up to five million dollars, then you can opt for a BOP. On the other hand, there are also businesses, such as restaurants that may not be able to get one such policy, since the risk associated with them is too great. Because of that, they also need to buy separate coverages.
Combining 3 Insurance Policies into 1 Package
BOP includes 3 types of policies in one and it includes:
Business Interruption Insurance: This is a very useful coverage that’s going to protect you if your business needs to shut down due to different types of damages or events, including wind damage, fire damage, etc.
Liability insurance: Coverage if an individual gets injured by using one of your services, products or at your business.
Property Insurance: Protection for your office space or your building, but also the property your business owns (including inventory and equipment).
BOPs Can Be Customized To Meet Your Needs
Running a small business means that you expose yourself to a wide range of risks and the insurance policy you have may not protect you against all of them. So if you have a business owned car, then you need to get special coverage for it. Depending on your state, if you hire employees, then you may need to also carry workers compensation insurance. There are many other types of risks you may need to get insurance for, including business identity theft or system break-in.
To learn more about the type of insurance you may need, it’s recommended that you get in touch with an insurance agent and let him know more about the business you’re running. Other types of insurance you may require include:
- Terrorism insurance.
- Cybersecurity Insurance
- Sewer back-up and flood insurance.
- Disability and health insurance.
- Workers compensation insurance.
- Business vehicle insurance.
- Employee practices liability insurance.
- Professional liability insurance.
Excess and Umbrella Insurance
If you’d like your BOP to provide you more coverage, then you need to consider adding an umbrella insurance or excess liability insurance policy. By getting this type of insurance you’ll be able to greatly increase the limits of your initial policies. Also, opting for umbrella coverage you’ll not only increase coverage, but also broaden it. Umbrella coverage helps you cover risks that other policies cannot and getting it you may even get reimbursed for deductibles. To learn more about combining a BOP with an umbrella policy, be sure to speak to an insurance professional.