Business Owner’s Policy (BOP) for Small Businesses

Building your very own business is part of the American dream for many people.  However, this dream does not come without risk. Maintaining a business on your own means that you are not only in charge of the business, employees, etc. but that your business is at risk of being affected by many risk factors including fire, theft, and other disasters that can have a negative impact on your business.  For this reason, before starting out a business, you should consider getting insurance coverage BOP also known as a business owners’ policy as it is made specifically for small business owners and their small businesses. Still confused about this type of insurance? This article will contain all the information that you need in order to understand business owners’ insurance.  If you are still confused after reading the article, then please contact us for a consultation with a licensed insurance agent.

Business Owners Insurance, what is it?

Business owner’s insurance (often referred to as a BOP or Business Owners Policy) is a special kind of insurance for small business owners. It usually consists of all the basic coverage for business owners, packaged into one bundle. This bundle will typically provide more comprehensive coverage and be sold at a lower price as compared to buying all the individual coverages separately.  Therefore, the packaged bundle of coverages tends to be a good financial investment. Business owner’s insurance sometimes includes business interruption coverage, which covers the income that you lose should your business be interrupted for specific reasons, as well, making it an attractive choice for start-ups or other small businesses.

Why choose Business Owners Insurance?

There are all sorts of things that can happen to your business. Example: A fire can break out, and your property will be damaged, putting a halt to your normal business operation. A theft happens, and you will lose a substantial amount of money without compensation because most personal insurance policies will not provide coverage for such events. Business owner’s insurance provides a broader range of coverage typically rated at a much lower premium, allowing you to mitigate the damage caused in an unfortunate event. This is also a more economical option than paying for individual business insurance policies, as they can be quite costly when separated. Another huge plus is that it automatically includes many coverages that are usually added as endorsements in other packages, saving you a lot of money.

What does Business Owners Insurance include?

Typically, a business owners insurance policy includes the following coverage:

• Property insurance: the most essential coverage in the package. This kind of insurance covers all of your properties, from buildings to equipment, as well as those that are owned by a third party but currently in your care.
• Business interruption insurance: this is the insurance that covers the amount of income that you lose when your business was interrupted by a fire or other disasters. Sometimes it can also include extra expenses that are needed for you to keep operating in a temporary location.
• Liability protection: sometimes, your operations might hurt customers or their property. If that unfortunate event should happen, liability protection will pay for their medical bills or compensation.

It’s always difficult to start your own business, especially in the beginning since there are so many risks. However, with the help of business owner’s insurance, you will be able to alleviate most of the unfortunate damage done and quickly get back on your feet. Looking for the most comprehensive business owner’s insurance? Look no further, we have everything that you need! Call us now for more information.