There are many uncertainties in business life resulting in unforeseen challenges. Disasters happen all the time caused by from nature, equipment failures, and accidents. Usually, 90% of the costs incurred by these disasters falls on the business owner. The proprietors foot the bills when they thought their insurance would.
It doesn’t need to be this way. Savvy business owners look for commercial insurance coverage called Business Owner Policy (BOP). BOP cushions firms and their owners against the high costs of damage to property, and injuries to people. BOP is a necessary protective measure for business owners who want personal protection.
1: What is BOP?
BOP is a commercial insurance plan tailored into a package best-suited for the individual business owner. Business Owner Policy accounts for the standard protection requirements of all small-medium size companies, then forms them into one complete package. BOP packages allow for extra coverage options as well, depending on your business needs. Stop wading through the sea of business insurance policy options. BOP is the inexpensive, convenient, and complete package.
According to Investopedia, a BOP is often the less-expensive option compared to creating the same plan from scratch. BOP packages meet the needs and address the concerns of individual business owners through customization. BOP packages are flexible because not all businesses share the same types and levels of risk. It’s common for commercial insurance brokers to meet with business owners first, determining their specific requirements, before crafting a package. Packages vary based on:
- Professional services provided
- Customer exposure
- Regional hazards
A professional broker can help you create a complete insurance package for your business.
2: What’s Does BOP Include?
- BOP packages apply to both residential and commercial property. Policy coverage can be standard or unique. Unique options offer extra advantages through increased and specific protection. At the basic level, BOP provides the following coverage:
- BOP includes both liability and property insurance for all company-owned building and their contents. Property insurance is available in standard and special options, offering increased levels of coverage for those who need it.
- BOP supplies interruption coverage, protecting owners against losses incurred due to disaster.
- BOP liability protection protects the company for the actions of its employees and owners. Also covered are workplace liability incidents, defective products, faulty services and more.
- BOP does not cover auto insurance costs, disability settlements, and workers compensation. Separate policies will be necessary to include coverage for those concerns.
3: How Much Does it Cost?
Insurance Noodle contends there is no one true figure for the cost of BOP. Cost for BOP is dependent on a variety of factors that differ from business to business. Client base, business size, annual revenue, customer traffic, risk… These all factor into your BOP needs and cost. Business owners should consider all their needs when shopping for a BOP. What BOPs have in common is helping keep costs low, and helping protect business owners.
Providers use different systems when crafting BOP plans for business owners. There are many pre-packaged options available, and customized packages are available to meet your specific needs. Add-ons like industrial car insurance, flood insurance coverage and earthquake insurance may be worth considering, depending on your circumstances. Always investigate your market before settling on your BOP
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