Business Owner’s Insurance Policy: How to Get the Right Coverage

Business Owners Policy (BOP), takes the guesswork out of purchasing the right package of insurance coverages for your business.

A BOP bundles several types of coverage in one package, similar to the way a homeowners policy works but is designed for small and midsized businesses.

Most business owner’s insurance policies combine the following types of coverage in one convenient bundle:

  • Commercial property insurance — Covers losses to property from common perils. It also covers office equipment, furniture, inventory, machinery, raw materials, computers and anything else that is vital to business operations.
  • General liability insurance — Covers a company’s legal responsibility for any harm it may cause to others, up to the policy limit. It also covers attorney fees and medical bills for anyone injured by the company.
  • Business interruption insurance — Reimburses for loss of income if a covered disaster interferes with the successful operation of the business.

As well as dozens of other insurance coverages that cover common exposures for small and midsized businesses.

This short video explains more…

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Business Owner’s Insurance Policy

Although a BOP is a convenient insurance option for small to midsized business owners, it does not cover professional liability, commercial auto insurance, and workers’ compensation.

Comprehensive cyber liability insurance is also excluded from most business owners’ insurance policies.

Here are a few examples of insurance coverages that can be added to a BOP:  

  • Crime coverage—Although it is minimal, crime coverage can be added to a BOP to cover losses as a result of crime, such as employee dishonesty and computer fraud. Typical crime coverage ranges between $1,000 and $5,000.
  • Data breach coverage—This coverage is commonly added to BOPs to help remedy the following losses resulting from data breaches:
    • Notifying impacted individuals
    • Hiring crisis communication consultants
    • Defense and settlement costs from associated lawsuits
    • Replacement of lost income
    • Extortion and ransom payments
  • Errors and omissions (E&O) coverage—Businesses that provide services for a fee can be sued by customers who claim that they were harmed because the business failed to perform its job properly. E&O coverage pays for any judgment for which the insured is found legally liable, up to the policy limit. It also covers legal defense costs.

Who Should Purchase a Business Owner’s Policy?

Businesses that have the following characteristics are ideal candidates for a BOP:   

  • Operate in a physical location, whether home-based or outside the home
  • Have assets that can be stolen, including products, cash, furniture and digital property
  • Are at a high risk for lawsuits
  • Employ less than 100 employees and have less $5 million in sales

The following types of businesses frequently purchase BOPs to protect from losses not covered by general liability insurance:

  • Manufacturers
  • Religious organizations
  • Apartments
  • Restaurants
  • Technology consultants and solutions providers
  • Wholesalers
  • Retailers

Benefits of Business Owner’s Policy

 As a business owner, there is no shortage of things that you need to manage on a daily basis. Whether it’s supervising employees, connecting with new clients or anything in between, there is only so much time in the day. That being said, it’s nice to have the peace of mind that you and your business are covered in the event that an insurance claim is brought against you.

A business owners policy (BOP) is a good option for small and midsized businesses, and it can offer you plenty of advantages, including:

 Broad coverage—BOPs cast a wide net of protection by bundling a number of different types of coverage into one plan. In general, BOPs provide commercial property, general liability, and business interruption coverage in one policy.

 Cost savings—Every dollar counts for small and midsized businesses, and BOPs can provide cost savings by combining the aforementioned policies so that you don’t have to go out and purchase each one separately. 

 Coverage for medical expenses—CGL policies will provide protection for your company if a nonemployee is injured on your premises or in an incident related to your operations. Coverage for medical payments can be triggered without legal action and allows for smaller medical claims to be settled quickly and without litigation.

 Customization—While BOPs cover multiple types of risk for your business, you don’t need to worry about buying something that you don’t need. These policies can be tailored to fit your business’s needs with additional coverage for risks such as cyber liability, equipment breakdown, personal and advertising injury, and more. 

How to Get the Right Business Owners’ Policy

A business owner’s policy in most cases is going to be less expensive than purchasing a package policy of the same coverages.

Purchasing a BOP will also make sure that any specific or particular coverages to that industry or line of business, say a legal firm versus a pizzeria versus a nail salon, are included specific to that industry.

So if you’re looking for a business owner’s insurance policy, there are two keys:

  1. You want to make sure that you have the right carrier, a carrier that understands what you’re doing, and,
  2. You want to make sure that your business owner’s policy is configured to your particular industry.

Here’s an example, let’s say Chubb has a tremendous program for restaurants. You want to make sure that you get a BOP or business owner’s policy for our restaurant through Chubb. Now, you’re going to get a great product at a great price.

The Rub

This is what we do here at Rogue Rogue. We have access to over 15 different carriers that write business owners policies.

We’ve also created special technology which allows us to compare what you need, say if you’re a restaurant and you’re looking for a business owner’s policy against all those carriers quickly and efficiently, so we can come back and say,

“Here is not only the best carrier but compared against 15 others, the best price in the market.”

That is why we focus on small businesses, and for you, making sure that you have the right business owner’s policy through the right carrier at the right price every single time.

If this is the kind of relationship that you would like with your insurance provider, we would love to talk to you.

I look forward to introducing you to a new way of viewing your insurance program.

Thank you,

Ryan Hanley

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