A Business Owner’s Policy is a complete package of protection for a business. It is a single policy suitable for the different coverage a business needs. Because of its comprehensive coverage and low price, insurance agents often endorse this policy. However, not every kind of business is eligible for a BOP.
What Kinds of Businesses Are Eligible for A BOP?
Businesses in low-risk industries often qualify for a BOP. A BOP combines general liability insurance with property insurance at a discount. Small businesses in these low-risk industries have a higher chance of getting approved because there is less chance for claims.
Examples of low-risk industries are:
The industries above tend to have fewer than 100 employees and have small workspaces. They also make less than $1 million in annual revenue and only need less than 12 months of business interruption insurance.
Why Is BOP Important?
Having a Business Owner’s Policy is essential because it can save small businesses a significant amount of money in the long run. Insurance helps in covering expenses in case of a claim. Without insurance, companies have to pay for the losses entirely from their own pockets. Even a single complaint can put a business in debt.
When Does A Business Need A BOP?
A business may need general liability insurance in a BOP when a client contract requires them. Although property insurance is not required, having BOP is highly encouraged for companies that own a building or valuable equipment.
What Types of Coverages Can You Include In Your BOP?
Business Owners Policy often provides all the coverage you want in a single insurance policy. It is easy to manage, and business owners can add content at any time. Below are some of the coverage you can include or add to your BOP:
If the business is eligible for a BOP, know the different options, and get the right coverage. Before purchasing BOP, determine the needs of the company and look at the policy limits. Also, talk to the insurance agent to ensure that the insurance money will cover most future claims.
At Urbasek Insurance Services, Inc. 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 (815) 740-0900 or Click Here to request a free quote.