What is a business owners policy and how can it help you save money on your small business insurance? If you are a small business owner shopping for commercial insurance, then read closely. Did you ever go to a restaurant that had a la carte pricing? It can get expensive very quickly. However, when you ask about the “specials” they are having, you find out you can get a meal with an appetizer and desert while saving a lot of money!
Did you know that business insurance works the same way? You can purchase individual insurance policies separately or in a package called a business owners policy, or a BOP.
OPTION 1: When you buy separate policies from different insurers it can be very expensive.
OPTION 2: You can buy a BOP and save money. A BOP combines typical coverage options into a standard package and is offered at a premium that is less than if each type of coverage was purchased separately.
What does a BOP usually include?
- Property coverage
- General liability
- Business interruption
Property Insurance
This covers your buildings and all of the contents owned by the company. Be advised that there are two different forms, standard and special, which provides more comprehensive coverage. So be sure to talk to your broker.
Liability Protection
This covers your company’s legal responsibility for the harm it may cause to others. This harm can be from a result of things that you and your employees do or fail to do in your business that may cause bodily injury or property damage due to defective products, faulty installations and errors in services provided.
Business Interruption Insurance
This covers the loss of income resulting from a fire or other catastrophe that disrupts the operation of the business. It can also include the extra expense of operating out of a temporary location.
But, not all BOPs are created equal. Not every type of insurance is included in a BOP. This is why it is important to shop around and why it is important to work with an insurance professional in your industry.
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What does a BOP not cover?
Business owner policies typically do not cover the following:
- Professional liability
- Commercial auto insurance
- Worker’s compensation
- Health insurance
- Disability insurance
Here is the important thing to remember
You will need separate insurance policies to cover professional services, your vehicles and your employees. The good news is that InsuranceHub can help you with all of these. Stop buying a la carte insurance policies. Why not pick up the phone or fill out the form above to get an affordable business owners policy today?
