A business owner’s policy, or BOP, is a combination of commercial property insurance and general liability insurance for your business. This is basically cheaper than when you’re buying the two policies separately. Here are five things you should know if you’re planning to get BOP insurance.
When Do You Need a BOP?
If you have a small business, you’ll need a BOP if you seek protection from unexpected financial losses. Many companies opt to purchase only general liability insurance. However, this is a problem since they’re not insuring their business property. If disaster strikes and gets your building and property in trouble, your general liability insurance won’t be able to help you with that.
What Makes Up a BOP Policy?
Having a BOP policy is basically having general liability insurance and commercial property insurance at the same time. With general liability insurance, you can protect your business against customer injury or damage to the client in any way. You can protect yourself from legal battles in case a client hurts himself while using your products or services. On the other hand, the commercial property insurance part of the BOP will protect your building from any damage or loss. This should cover anything that natural disasters and thieves cause.
What Are the Eligibility Requirements?
Not all small businesses are eligible for a BOP. Before you can purchase BOP, you must ensure that your business has a low industry risk. It should not have more than 100 employees. Also, your business must make less than $1 million a year in profit and uses a small commercial space. Thus, a BOP is ideal for small businesses that want to shield themselves from the expensive costs of legal lawsuits.
What Are the Benefits?
A BOP can provide your small business with liability protection and business property protection. Moreover, it can also provide your business with advertising injury protection. This refers to libel and slander accusations against your advertisements. This could also refer to copyright infringement issues. Also, with business property protection, a BOP can protect your trademark equipment in case of loss or damage.
What Factors Affect the Costs of the Policy?
A BOP can result in higher premiums for you. One factor that may affect the cost of your premiums is the type of industry your business is in. Other factors include the type of risks it faces, the coverage limits, your location, and the number of employees you have.
Some Final Words
A BOP is essential for all small businesses to protect themselves from the high costs of legal settlements. Accidents happen in the company, no matter how careful you are. Thus, as early as possible, get a BOP for your business. That will give you peace of mind.
At All Things Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (763) 645-5450 or Click Here to request a free quote.