If you are a small business owner who is looking for an affordable and easily manageable business insurance, then one solution might be a business owners policy.
Better known as BOPs, these package policies offer several types of coverage that are cornerstones of your business’s risk management strategy. They also offer the convenience and affordability that small business owners need in their coverage. After all, you do not have unlimited time or money to spend trying to optimize and coordinate your benefits.
Once you have the basic coverage of a BOP in place, you will be able to customize and expand your insurance options to your advantage. However, you must make sure the foundational coverage within the BOP is solid and dependable from the get-go.
Consider the fundamental coverage offered within your BOP, and how you can use it as a starting point for building a comprehensive, reliable insurance policy.
Coverage Offered in a BOP
BOPs are designed to make insurance easy to manage for small business owners. They offer coverage terms that are geared towards smaller operations that have lower levels of financial liability. They also offer the convenience of having several essential pieces of coverage in one package, and for one price.
Within most BOPs, you will automatically receive three types of coverage:
- Property Insurance: This coverage insures property owned by the business including buildings, stock, furnishings and equipment. In the event of an unexpected hazard like a fire, severe storm, vandalism or theft, property insurance will help you repair or replace damaged items.
- General Liability Insurance: In the event that you are responsible for a client or other third party’s bodily injury or property damage, this coverage can help you compensate them for their losses. Even if an accident was unintentional, you might still have a legal obligation to address the affected person’s problems.
- Business Interruption Insurance: At times, a hazard within the business might cause a halt in operations. For example, following a fire, you might have to shut down while the business undergoes repairs. During this time, lost income and continuing financial obligations could create financial strain. Business interruption insurance will help you replace your lost income and continue to pay your bills despite this setback.
Your BOP itself can be customized with deductibles, coverage limits and endorsements to further tailor it to your operational needs. However, it is not the only policy your business might need. Other essential benefits that have to be purchased separately include workers’ compensation insurance, umbrella liability coverage, surety bonds, and sometimes other liability policies like E&O coverage that might not be available as endorsements.
Our agents will gladly work with you to optimize your BOP to your advantage, and then expand upon it to ensure that your small business always has the coverage that is right for it.
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