Fill Out One Form, Get BOP Insurance Quotes from Multiple Carriers
As with any aspect of running a small business, your insurance coverage involves some important paperwork that you need to keep track of. Applying for a Business Owner's Policy is no exception.
Let's go over what documents you need in order to apply for coverage and the documents you receive from the insurance company once you are covered.
What Forms Do You Need to Fill Out to Get a Business Owner's Policy?
When you apply for a Business Owner's Policy, you submit an application to an insurance company. Business Owner's Policy applications are usually submitted online after you supply basic information about your business, what it does, and the kinds of coverage you need.
A Business Owner's Policy contains two insurance policies:
- General Liability Insurance. Pays for covered lawsuits when people who don't work for you sue your business.
- Property Insurance. Pays to replace or repair business property after a covered loss event.
Because a BOP bundles these policies together, your BOP application asks you questions about your business liabilities (i.e., incidents you could be sued for) and what property you need covered.
Before you fill out an application, you must know how much:
- General Liability coverage you want. Policies range from $300,000 to $2 million in coverage for lawsuits.
- Property coverage you want. You can choose a policy that covers anywhere from $5,000 on up, depending on the amount of commercial property you have.
Some questions on the Business Owner's Policy application are very specific, and you may need to look over some of your business's paperwork before answering. These may include…
- Business contracts. Some contracts require you to have General Liability Insurance. Check your lease and business deals to make sure your new coverage will satisfy those requirements.
- Revenue sheets. You must estimate what your businesses income will be in the next 12 months. Even though this is just an estimate, you might want to look at your revenue sheets to make sure this number is as accurate as possible.
- Property value. When you sign up for Property Insurance, you choose the total amount of coverage you need. Review your businesses inventory, and figure out what it would cost to replace your equipment, tools, and other property. If you're insuring land or a building, remember that you don't insure based on the value assessed for tax purposes. You insure based on what the cost would be to repair, replace, and restore the property, which could be more than its tax-assessed value.
What Insurance Forms Will You Receive?
When you sign up for a Business Owner's Policy, you receive two documents for the General Liability Insurance portion of your coverage and two more for the Property Insurance portion. These documents are your:
- Insurance policy. This outlines all the nitty-gritty details about your coverage. Your Property and General Liability policies are each between 50 and 100 pages. They contain explanations of what is and is not covered. Your insurance agent should explain the details of your policy, but this document provides the official legal agreement between you and the insurance company.
- Certificate of liability insurance. This is a one-page document that proves you're covered and summarizes the basics of your coverage. When you sign certain contracts, the other party might ask to see your proof of insurance to verify you meet the insurance requirements specified by the contract. (You can read a more thorough explanation in our article on BOP certificates.)
Online Application for Free Business Owner's Policy Quotes
Compared to some of the other paperwork you have to do as a small business owner, applying for insurance is fairly straightforward. It can often be done in ten minutes. Now if only taxes were that easy!
To get coverage or receive free quotes, submit our online BOP application. Our insurance agents will customize a policy and send you free, no-strings-attached BOP quotes.