It can be difficult for new small businesses to select and purchase all the appropriate insurance packages. As a business owner, you want to secure your overall liability, various property, company vehicles, workers’ compensation system, and criminal data disturbances. Individually insuring all of these packages can be impossible to effectively research and acquire. With so many types of small business insurance available, which is necessary and which is not? To solve this issue, many providers have begun issuing business owners’ policy, or BOP, insurance. BOPs tie in all aspects of insurance businesses may need. Continue reading this post to learn more about how a insurance for business owners policy is better than individual policies.
Compiles General Liability & Property Protection
A BOP compiles your general liability and property protections into one comprehensive policy. According to some insurance agents, these are questionably the two most important coverages for new small businesses. Your liability protects you from another persons’ claims of injury. This covers any medical costs or damages to the injured parties’ property that you may incur. Property liability insurance protects against the physical equipment and building space you own. Packages often cover up to five individual office space locations, and protect against accidental damages. Being the two most important policies, they are likely also the most expensive. Purchasing these policies together with a BOP is not only more convenient, it is likely more affordable than purchasing two separate policies. Consider purchasing a BOP to compile your most important insurance options rather than choosing individual packages.
Allows You To Customize Policies
In addition to general liability and property insurance, a business owner’s policy allows you to customize additional protections. You can add on additional coverages based on the specific needs of your small business insurance quotes. Again, this saves you from having to seek unique, expensive individual insurance packages. Some additional coverages protect against loss of electronic data, crime insurance towards dishonest employees, or workers compensation insurance. However most commonly, business owners utilize customizable packages to add on coverage for their company vehicles or to secure specific assets. By allowing additional insurance purchases under a single policy, BOPs are far more valuable than individual insurance packages.
Offer Broad Eligibility
BOPs offer broad eligibility requirements. Because of this, they are extremely easy for business owners to acquire, especially when compared to sourcing individual packages. Business owner’s policies extend to a number of business industries and classes. Currently, restaurants, office or service based businesses, independent contractors, wholesale distributors, and shops are eligible for policies. BOPs only require that you conduct the majority of business operations on insured premises. Broad eligibility requirements are a major reason to purchase business insurance policies instead of individual packages.
Provide Lost Income Coverage
A feature extremely unique to BOP options, is packages to cover lost income. Businesses experience growths and reductions in revenues. This is especially the case for starting small businesses. Lost income packages insure against interruptions in business or significant loss in income. If you are forced to stop operations for a covered reason, lost income packages can compensate you for up to one year. These payments allow you to still maintain essential payments such as employee payroll, rent, or vehicle payments. Some business owners utilize lost income payments to fund relocation, advertising, or business expansion. In seeking the best insurance for business owners, consider how a BOP is frequently a better option compared to individual options.
Extends To Additional Parties
In addition to providing coverage to the physical location and assets of your business, BOPs extend to several other parties. All employees are covered for property damage or bodily injury claims from a third party. So is the damaged property, so that its replacement can be paid for. Contracted parties are additionally covered under BOPs. When parties begin work contracts they may ask to be listed on your insurance policy for the duration of a project. A BOP is easily extendable to these additional parties. Furthermore, you can cover your product or wholesale suppliers under a business owners policy. This protects you in case expensive rented equipment is damaged or broken. As you look for the best insurance package for small business owners, consider the value of BOPs ability to extend to other parties.
While a business owners policy offers extremely comprehensive, broad coverage options, there are other limits very common for BOP insurance. Most notably, BOP policies do not protect you from specific claims on services you preform or products you offer. Most policies additionally limit coverage on client damages when inaccurate or incomplete information if provided. At the same time, you may not be protected from professional errors or employee injuries. Furthermore, you may not be protected from employee discrimination lawsuits even with a BOP policy. Before you purchase BOP coverage, be sure to analyze your policy limits.
For small business owners, building the best insurance packages can be stressful. A BOP policy arranges all your necessary coverages in one comprehensive package. It can be difficult to balance insurance needs since there are so many differences between personal and business insurance. If you are still undecided about a business owner’s policy, consider how they compile your two most important insurances into one package. Analyze how they allow you to customize policies to your specific business. BOPs offer broad eligibility requirements to new small business owners. Some even provide packages to cover lost income. Furthermore, packages extend to additional parties outside of your organization. If you are interested how a insurance for business owners policy is better than individual policies, consider the points mentioned above.