Do I need a Business Owner's Insurance Policy (BOP)?
The entrepreneur who takes the chance of running a business without benefit of appropriate insurance coverage might soon find him or herself in serious hot water. A business owner’s policy, familiarly known as a BOP, can save the day in numerous ways. This type of coverage can be of use to anyone who:
- Works out of an owned or rented physical location.
- Is in the slightest danger of ever facing a lawsuit.
- Wishes to protect his business’s valuable assets.
Before deciding on its purchase, however, you’ll want to know one thing: What exactly does a business owner’s policy cover?
What You Can Expect From a BOP
The business owner’s policy exists as a discounted package that defends against liability risks while at the same time watching over your property. Well-suited to and specifically designed for the owner of a small- to medium-sized concern, a BOP will protect you against:
- Property loss. A BOP will have your back against loss or damage to buildings, workspaces, inventory, fixtures, furniture or equipment that your business either owns, rents or leases. You can also expect a business owner’s policy to cover your valuable papers and records while additionally protecting your accounts receivable.
- Liability suits. A BOP will protect your interests if someone chooses to sue your company for damage to themselves or to their personal property. It will also pay any associated legal expenses that such an action might force you to incur.
- Loss of business income. If an unexpected occurrence should force you to temporarily cease your business operations, your BOP will afford the money you need to continue paying your rent, making payroll and meeting the rest of your recurring financial obligations.
In addition to providing you with broad coverage, a BOP allows you to tailor that coverage to meet the specific needs of your enterprise. For example, you might require protection against:
- Data breaches. Thanks to increasingly sophisticated methods of hacking, any business that stores customer, employee or patient information electronically is at risk of theft. If this should happen to you, data breach coverage will help with the costs associated with informing affected individuals, offering credit monitoring where required and engaging in reputation-repairing public relations efforts as needed.
- Professional liability for errors and omissions. Clients and customers can sue you for all sorts of reasons. Even if you have not done something actively wrong, any negligence or oversight that might occur on your watch can also be grounds for a lawsuit. Professional liability insurance will protect your business against claims of this nature.
Who Qualifies for a Business Owner’s Policy?
Not all business concerns will qualify for a BOP. Because this type of coverage is tailored to the needs of the smaller enterprise, anyone who hopes to qualify for it must:
- Employ fewer than 100 workers.
- Work out of a small location.
- Have an annual revenue of under $1 million.
- Not be involved in high-risk operations.
If your enterprise fails to meet these basic requirements, a business owner’s policy will not be right for you.
How Much Does a Business Owner’s Policy Cost?
The exact cost of a BOP will rise or fall in accordance with perceived risk. This is true with any type of insurance, and rates will rise for a business that employs a large number of people as well as one whose workers:
- Routinely engage in risky activities.
- Perform physical labor.
- Often travel for job-related reasons.
- Work with power tools.
- Handle dangerous substances.
The smaller business that has never been denied coverage, has never had to file a claim or has little property to insure will enjoy far lower rates. The same is true of the sole proprietor as opposed to the owner of a larger concern.
Naturally, the savvy businessman will not want to pay any more for business owner’s insurance than necessary. When you work with the agents at All Kinds of Insurance, you enjoy the benefit of:
- Working with an agent who understands your enterprise. At All Kinds of Insurance, we will connect you with agents who specialize in your industry and know the levels of coverage you’re likely to require.
- Dealing with a team that takes pride in staying current of the latest insurance changes and coverage laws.
- Having access to quotes from numerous insurers with one easy phone call.
At All Kinds of Insurance, we are proud to have helped numerous entrepreneurs protect their investments with business owner’s insurance, and we can help you too. Call 702-534-4697 for a quote today.