Although it may sound like a dance craze from the 1950’s, a BOP can go a long way in protecting your small to mid size business against the risks that can have a negative financial impact on you and your organization. BOP is actually an acronym for Business Owners Policy. In essence it is business insurance that protects against fire, burglary, liability, and business interruption losses. Since a BOP is prepackaged, it is typically more cost effective than purchasing separate policies.
The added bonus is that you only have to review one policy, which saves time dealing with paperwork. Additional coverage can be added, if need be, in the form of an endorsement or a rider. BOP insurance is a product that is specifically designed to serve small and medium sized businesses. The type of business goes a long way in determining if your company is eligible. Typically speaking, organizations with up to one hundred employees, and revenues that do not exceed $5 million per year are candidates for a BOP policy.
That being stated, there are particular types of industries, such as restaurants, that may be ineligible based on the specific risks inherent in the business. In this case, you would need to consider purchasing the individual coverage on a separate basis.
The BOP Combines Three Insurance Policies Into A Single Package
A BOP provides the core insurance policies that most small to mid size businesses need in one convenient package. They are as follows….
Property Insurance
This type of coverage provides protections for your building or office space, and any property that is owned by the business such as equipment and inventory.
Liability Insurance
This type of coverage protects the business and business owner against the costs that arise if a third party is injured as a result of visiting the business, or by utilizing your products and or services.
Business Interruption Insurance
This type of coverage, also known as Business Income Insurance, replaces revenue that is lost in the event that your business is forced to shut down due to fire, wind damage, and other covered losses.
The BOP Can Be Customized To Meet Your Needs
It is important for business owners to fully understand the fact that a BOP does not cover all risks that are associated with operating a small to mid size business, and the coverage limits are typically lower. For example, if you have employees on the payroll, you may very well be required to carry a Workers Compensation Insurance policy. If you have a business owned vehicle, you will also need insurance coverage that goes above and beyond your personal car insurance policy.
You may also want to consider insurance coverage for things such as a computer system break in, or business identity thefts. There certainly are a plethora of unique risks that are associated with your business. A reputable insurance professional can help you discover the particular business related insurance policies that are right for you and your business.
Excess Liability And Umbrella Policies Can Increase Your Coverage
If you need to increase the protection provided by your BOP insurance, adding an Excess Liability or Umbrella Insurance policy is the smart choice. In essence, this type of supplemental insurance policy increases your coverage beyond the limits of your primary insurance policies. Depending on your particular policy, the umbrella coverage is designed to widen and increase coverage. It basically fills in the gaps left by other types of liability insurance coverage by covering additional areas of risk. It can even reimburse you for deductibles.
In conclusion, the BOP may very well be the ideal way to protect your business and yourself. If you have any questions, please call (508) 831-0133 to contact an associate at Zawada Insurance. We are happy to walk you through the details of your life insurance policy and explain your coverage options. We look forward to helping you with all of your personal and or business related insurance needs.