The Best Things about BOP Insurance (Besides Cost)
We can all probably agree on two things:
- A Business Owner’s Policy (or BOP) is an affordable insurance package for small-business owners looking for reliable coverage.
- “BOP” is fun to say.
Onomatopoeia aside, a BOP bundles together General Liability Insurance and Commercial Property Insurance at a discounted rate for qualifying small businesses. You save serious green while enjoying protection from third-party lawsuits over bodily injuries, property damage, and advertising injuries. You also have the means to get your business running again if your commercial property is stolen, damaged, or lost because of certain events.
That’s enough to make most business owners apply for BOP quotes. But aside from its affordability, here are four other reasons to invest in a Business Owner’s Policy.
1. BOPs Are Customizable
To fit your business’s needs, a Business Owner’s Policy can be customized with riders or endorsements (i.e., insurance you can purchase separately to supplement your coverage). For example, you might add on Cyber Liability Insurance to cover your data breach risk and Business Interruption Insurance to help you pay for ongoing expenses if a covered Property Insurance claim forces your business to temporarily close.
2. BOPs Are for Small Businesses Only
BOPs were created specifically to fit the needs and budgets of small-business owners. Insurance carriers require businesses to meet certain criteria to receive this exclusive discounted coverage. Typically, eligible businesses…
- Have small commercial premises. If your business occupies a large commercial building, you may need more property and liability coverage than the standard BOP can offer.
- Have few employees. The more employees you have, the more risk involved.
- Are considered low risk. If your business has high-risk operations or offers highly specialized services, your liability coverage needs may be higher than a BOP can account for.
3. One Bundle = One Annual Premium
As you know, a Business Owner’s Policy is an insurance bundle that packages two types of coverage together. Instead of separate General Liability and Property Insurance policies, you now have a single, streamlined policy. That also means you only have one annual insurance payment to worry about.
4. BOPs Sustain Businesses
You may not realize it, but a Business Owner’s Policy ensures you have the coverage you need to run and sustain your business. Without proper coverage, your business may not even be able to open its doors. A BOP can…
- Lend credibility to your business. Insurance builds a foundation of trust with your clients. They know that if something goes wrong, your business has the means to make amends.
- Help you sign a lease. Before you can sign a lease for a commercial space, many landlords require adequate insurance so they can recoup losses if there’s property damage.
- Pay for unexpected expenses. Whether your business is facing a copyright infringement lawsuit or recovering from a pesky windstorm, a BOP ensures an unanticipated disaster doesn't force your doors shut.
To learn more about what a BOP can do, read "The Business Owner’s Policy: Affordable Insurance for Small Businesses."