If you’ve been scouring the internet for business insurance then you know there are a lot of options. But you’re here because you need to find the best insurance option for you and somewhere along the lines you’ve heard of a Business Owners Policy or BOP and are wondering what the deal is with this insurance option.
Fortunately, for small to medium businesses, there is the BOP. But is a BOP right for you?
A Business Owners Policy is insurance that allows a business (that meet certain criteria) to combine coverage from multiple policies into one convenient package. BOPs are created for businesses that face similar risks and often appeal to small and medium-sized businesses. However, larger companies can purchase a commercial BOP package and customize it to fit their needs. These days, there’s a BOP for most mainstream businesses, from hair salons to hardware stores, which makes the process easier.
Every business needs insurance but policies can get pricey. Sometimes a BOP is less costly than individual policies which is why it’s appealing. Furthermore, if there is damage to your property or the property of others, employee theft, mechanical difficulties, or an everyday accident at your business that causes a loss of income, a BOP can keep you from having to close your doors as a result of the expenses related to the events.
While a BOP is good for nearly any business, there are some businesses that have general lower risks and are well suited for a BOP. Insurance companies determine a business’s level of risk based on any claim history and conditions such as safety and health concerns, the likelihood of theft, burglary, or damage from a natural disaster, and business that are in high-risk industries. The lower the risk of your company the less complicated insurance coverage you need. This makes it convenient to go with a BOP.
The following businesses are good candidates for a BOP:
The building and its contents.
Lost income and employee salaries while you rebuild after a disaster.
For any time that you might be sued.
In case an employee steals from you.
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