MONDAY, JANUARY 2, 2023
If you have a small business, then you are probably looking for the most efficient and affordable solutions for your insurance needs. The answer to your question is a business owners policy, commonly called a BOP.
By investing a BOP, you will receive several essential types of business insurance in a single policy, and for a single price. However, a BOP will not automatically include all the benefits you might need. Therefore, with the help of your agent, you should follow the process of starting with the BOP and then augmenting your coverage from there.
What Does a BOP Include?
Business insurance itself is not a single policy, and most businesses must carry several different policies in order to optimize their benefits. However, small business owners do not have the time or unlimited financial resources to carry and juggle numerous policies.
To make this process simpler for your small business, your BOP will be able to play a central role. It works by providing the essential coverage that every business needs in a single package, with limits and terms that are tailored to your small operation’s advantage. Furthermore, the price of this single package is usually lower overall as opposed to buying his essential coverage piecemeal.
Most BOPs offer at least the following benefits:
Property Insurance: This includes coverage for all buildings listed on the policy. It also covers the contents within your business, including stock, furnishings, equipment and similar items. You can generally insure specialty property that is specific to your business under this plan.
Business Interruption Coverage: BOPs provide business interruption coverage because a halt in your operations could mean lost income. For example, if a fire occurs in the business, then you might have to shut down while you make repairs. This coverage can help you continue to pay operating expenses and replace lost income, despite the losses.
Liability Insurance: Commercial General liability insurance provides protection for instances in which you make mistakes that make you responsible for the losses another person suffers. Usually, your plan will cover both third-party bodily injuries and property damage. For example, if someone falls in your business and then sues you for your losses, then this coverage might help you cover their medical bills and other settlements, along with the requisite legal costs.
You will have the leeway to choose the coverage limits you need within your BOP, up to its available terms. However, you must often augment your benefits with additional coverage, such as E&O, workers’ compensation, commercial auto, umbrella liability and additional benefits that are not available within this package.
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