How to Choose the Right Business Owner Policy?

How to Choose the Right Business Owner Policy?

Every business needs some form of insurance policy. A business owner policy is a commercially oriented insurance policies. There are several insurance policies which are legally required. The state will not let a business operate within its borders without those policies. But there are many more policies available to a business owner which can provide additional protection.

The Dilemma of a Businessowner

Every business owner needs to make a decision on what insurance policy to choose. Another critical decision is to decide how much coverage to buy. By buying too much insurance, you can ensure ample protection, but this money could have been better spent elsewhere. If you buy too little insurance, it could mean insufficient protection in case of a disaster. You could potentially leave yourself and your business open to risk in both such circumstances. By choosing one appropriate coverage, you can forget about such difficulties. A BOP is one such coverage. The importance of a business owner policy can not be denied.

What is a BOP?

A business owner policy allows a business owner to buy a bunch of policies as a package deal. It brings about several different types of coverages in a single policy. This is quite similar to how a homeowner’s insurance policy works. The BOP is specifically designed to help small and mid sized businesses.

The packages offered in business owner policy are designed for businesses which face similar kind of risks. The equipment, the merchandise; they can all be covered under a BOP. Moreover, all the coverages under general liability insurance are also covered under it. The office equipment, furniture and various supplies are covered in up to 5 locations. The coverage extends to the rented and leased equipment.

Before choosing a BOP for yourself and your business, you must ask several questions. Only upon answering those questions you will be able to decide which policy is the best for you. Following are some of those questions;

What is Included in a Business Owner Policy?

A best business owner policy combines different type of commercial insurance policies into one convenient package. They include;

Commercial Property Insurance

It provides coverage to commercial property from any dangers. Usually, the contents of property fall under this policy.

General Liability Insurance

It provides coverage against any legal liability towards the business entity. It can cover the attorney fees and even the medical bills for the injured.

Business Interruption Insurance

This insurance policy reimburses a business for the loss of income in case of covered disaster. This could be especially helpful in the current COVID-19 Breakout.

What is Excluded from a Business Owner Policy?

A BOP bundle is very good at handling various risks that a low or mid-sized business might face. However, it does not mean this policy encompasses everything. The professional liability insurance, auto insurance and workers compensation insurance are few policies not included in a BOP. Yet, there is nothing stopping you, as a business owner, to purchase these excluded policies separately. A few more examples of these exclusions are;

Crime Insurance

This type of insurance provides coverage against any commercial crime, such as employee dishonesty or computer fraud.

Data Breach Insurance

A data breach can result in many losses. This type of coverage protects from the following losses;

  • Notifying affected individuals
  • Hiring crisis communication consultants
  • Defense and settlement costs from lawsuits
  • Replacement of lost income
  • Extortion and ransom payments
Errors and Omissions Insurance

A client reserves the right to sue a business. Especially, if they have been harmed by its products or services. This insurance policy protects the business against such claims. It also covers the defense costs.

Who Should Buy a Business Owner Policy?

Any business low to mid-sized business can consider buying a BOP for protection. Every business needs property coverage, even if they operate from home-based location. Every business has assets and various other tools that are at a risk of theft. There are also other high risks that almost every business is at risk of. All such businesses are eligible for buying BOP. Following are a few examples of business types which can purchase a BOP;

  • Land Lords
  • Manufacturers
  • Religious organizations
  • Restaurants
  • IT Specialists
  • Wholesalers
  • Retailers and much more!!!

What Types of Businesses are Eligible for Purchasing a Business Owner Policy?

Almost every small to mid-sized business is eligible for purchasing a BOP. The type of business, location of premises, size of operations, class of business and revenue limits determine specifics in BOP. The premiums are dependent upon the agreed upon policies within a BOP. It also depends upon financial stability, construction specifications, security features and fire hazards etc.

Learn More About Business Owner Policy

Deciding which insurance policy to choose is a very important and daunting task for most business owners. There are many risks avoidable by purchasing the right insurance policy. However, such a task is ever more difficult for those who remain ignorant how to go about doing this. Another issue is proximity. That is why if I was ever in your place, I would purchase the best business owner policy near me.

The SGA Financial Inc. is an insurance agency based in Texas. We specialize in providing insurance to our commercial clients. Additionally, we can easily help you determine which insurance coverage’s are the best for yourself and your business. We can help determine which package of a Business owner policy will function best for you and your enterprise. Take advantage of many specialists we have available and ask for advice. We will not disappoint you.