Owning and running a business involves a lot of things. One of the most important is business insurance. There are many types of insurance that you should have, including liability insurance, commercial auto insurance, workers’ compensation, and property insurance. Depending on the type of business, or how much time you have to research, it can be hard to know what you need and what you don’t.
That’s where a business owners plan (BOP) comes in. it combines several types of insurance into one policy so that it’s streamlined and you only have what you need. This is especially valuable for small business owners who want to cut costs, but also need the best protection possible. A BOP can make your life easier, and leave you with more time to worry about your business, and not about whether you and it are protected.
What Is BOP Insurance?
It’s best to think of a BOP as a package of insurance. It contains everything that your business needs to be protected. Most BOPs have general liability and property coverage to start, and you can build it up from there with tailored BOP insurance.
General liability insurance will protect you against any liability that you might incur while operating your business. This includes if someone is injured or suffers property damage while on your property. It can also protect against claims of reputational damage against you. Without this insurance, if someone were to make a legal claim against you, you will be on the hook for legal costs and any awards made to the complainant.
Commercial property insurance protects your property against any number of hazards. This can include natural disasters, vandalism, fire, water damage and whatever else your specific policy will cover. Coverage can also include compensation to kep your business running if the property damage prevents you from using your building, or providing funds to continue paying your costs until you are back up and running properly again.
Other common options to add to a BOP is commercial automobile insurance. Even if you are a small business and you use your personal vehicle, it might not be covered. You do not want to wait until you are in an accident to find out that your personal policy does not cover you for work tasks.
You can also add what is called cyber insurance. We live in a very connected and digital world where much of our sensitive data is in the cloud. With cyber insurance you can be protected if your business suffers a cyber attack or a data breach.
Depending on your coverage, you may also be able to add crime insurnace. This will protect you against crimes made against your busienss such as theft or fraud. This can include actions taken by outsiders and your own staff. You may also qualify for coverage against loss of inventory or spoilage of food products.
Do I Need BOP Insurance?
If you own a small business, then the answer is most likely “yes.” However, it’s important to note that while BOPs are intended for small businesses, they may not be appropriate for everyone. Here are the main factors to consider.
If you have a physical location for your business, whether rented or owned, then you should have property coverage. It will help to cover not just the building, but your assets such as equipment and electronics. It will also cover exterior assets such as signage and fencing.
If there is any possibility that your business will get sued, then you should absolutely have liability coverage. A lawsuit can drag on for years and cost thousands of dollars in legal fees. THen at the end you may need to pay compensation to the parties who brought the action against you. You might be surprised to know how many businesses find themselves in litigation every year. If you are one of them, you could find yourself in big trouble without coverage.
If you have assets that could be damaged or stolen, then you will want protection in the event that the unthinkable happens. Coverage will provide you with compensation for what was lost, and allow you to continue your operations even if nothing is recovered.
Benefits Of BOP Coverage
A BOP is designed to be simple. Running a business is a lot of work, and the more you can simplify things, the better. For one, a BOP keeps the number of payments you have to make down to a minimum. You can have many of your main insurance needs covered under one payment. There’s no worry about getting confused about your coverages and which one you have paid and which ones you haven’t. There’s no need to figure out which insurance provider to call to ask questions or make changes, either. It’s all at the same number.
On top of that, a BOP can save you money. When you bundle your mobile phone, cable, and internet services, you can get a discount. You may be able to do the same thing by essentially bundling your insurance costs. You can protect your bottom line while also protecting your business.
What Is Not Covered By BOPs?
It’s important to remember that not everything is covered by BOPs. The main coverage that is not included in a standard BOP and is required in most states is workers’ compensation coverage. This coverage provides compensation to employees who have been injured or gotten ill while at work. It will help with medical bills and with lost wages. These costs could be devastating to a business, and injured employees deserve the help.
You need to do whatever you can to protect your small business. That means having the right coverage in case of anything bad happening. That can include damage to your property, injury to others, or legal action brought against you. A BOP is a simple way to make sure that you have the essential coverage you need. Rest your head at night knowing that with your BOP everything you have built is protected.