A Business Owner’s Policy (BOP) protects small businesses in much the same way that a Homeowner’s insurance policy protects your home and personal possessions. By combining two of the most critical coverages for small business — Business Liability and Property — a BOP can save you money while safeguarding everything you’ve worked so hard to build.
Not every small business qualifies for a BOP. Things like the type of business, the size of the premises, the number of employees, and annual revenue can also determine eligibility.
Your business is an extension of who you are and a reflection of all you’ve accomplished – so don’t let things like injury to others, or damage to the property of others, harm it. A BOP combines essential insurance coverages. And it also offers the flexibility to purchase optional, additional coverage, helping to protect your assets so you can concentrate on what matters most – running your business.
Many lenders require businesses to purchase insurance before entering into financial agreements.
A typical BOP provides liability insurance and protection for your business’ property. But businesses are different. An insurance program tailored to your specific needs could be the difference between a dream-come-true and a nightmare.
A BOP does NOT provide coverage for injuries to your employees that occur while they’re on the job or for damage caused by commercial vehicles owned by and used in your business.
Several factors are used to determine how much you‘ll need to pay for your BOP. These include, for example, the type of business you have, where it’s located, the square footage you occupy, annual sales/payroll and the coverage and coverage limits you select.
Plenty of optional coverages that are available separately are also available in cost-effective packages, which could save you money.
If faced with a property or liability claim, contact your insurance company immediately to report the incident. The sooner a claim is reported, the sooner it can be resolved, so you can get back to business. Keep in mind that most insurance companies offer 24/7 claim-reporting service.
Backing up data and software daily can help speed recovery from data loss or hardware failure.
A BOP gives you the peace of mind of having key coverage that helps protect you from typical property losses and liability claims. But that may not be enough. Be sure to speak with your insurance representative about any additional coverage you may need based on your unique business needs.
Employment Practices Liability Insurance (EPLI) protects you from employment-related claims resulting from acts like wrongful employment-related discrimination and termination.
Begin by making sure your insurance representative understands your business. This will make all the difference when selecting coverage and coverage limits for your business. And let him or her know as changes in your business occur (e.g.: adding/eliminating a location, purchase of new equipment). This will help ensure that your coverage and business evolve together.
Business trade associations can offer insight on insurance programs designed specifically for your type of business.