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Is BOP Insurance Right for Your Business?

If you have a small to mid-sized business, you may be daunted by the number of risks you face, and the number and variety of insurance policies you will need to buy to cover those risks. A business owners policy, or BOP, may be the answer. A BOP is a package policy designed to offer small to medium sized businesses most of the insurance coverage they need in one convenient product.

There are some risks that BOPs do not include, and exact coverage and wording can vary from company to company, so it is important to review a number of options before you purchase your coverage. Univision Insurance business lines agent can help you compare business owners policy quotes and find the coverage that is right for you.

Small Business Facts
  • Small businesses provide 75% of all net new jobs in the U.S.

  • There are 63.7 million people who are self-employed or work for small businesses, accounting for 42% of the U.S. workforce.

  • The smallest businesses – those with fewer than 20 employees – created 80% of small business jobs from 1999 to 2004.

What Is BOP Insurance?

If you are looking for a BOP insurance definition, it is simply a policy that provides both property and business liability insurance in one packaged policy. The cost of the combined coverage is typically less than it would cost to purchase each of the included coverage types separately.

A business owner policy is designed to cover the basic needs of small to mid-sized businesses at an affordable rate.

What Does BOP Insurance Cover?

The basic coverage in a typical BOP include:

 

  • Real property coverage (if you own your own building)

  • Business personal property insurance

  • Loss of income (business interruption)

  • Equipment off premises

  • Employee dishonesty

  • General liability coverage for the premises and operations

  • Medical payments

The following are usually offered on an optional basis:

  • Hired and non-owned autos (if you have a separate auto policy this is better included there)

  • Loss of money and securities

  • Loss of electronic data

  • Employment practices liability

 

A BOP is not designed for a large, multi-location company with a need for a complex insurance program. However, it can be ideal for a smaller, one-location business.

What Is Not Included in a BOP?

Business owner policies will not normally include the following coverages:

 

  • Liability and physical damage coverage on owned vehicles

  • Workers compensation coverage

  • Flood insurance

  • Umbrella liability

  • Professional liability or errors and omissions coverage

  • Aircraft and watercraft

  • Coverage for property in transit, particularly for an international shipment

  • Coverage for more than five locations

 

All these risks can be covered in separate policies or in endorsements added to your current policy. In order to be sure you get the BOP insurance you need, call us today adn talk to agent.

Will a BOP Save Me Money?

While all businesses need to control costs, small and medium-sized businesses often have more financial concerns and tighter margins than larger companies. You can often save on insurance rates by taking a number of measures. These include:

 

  • Combining the critical coverage you need in a BOP

  • Asking your agent for information on discounts. You may qualify for discounts based on:

    • Combining multiple policies under one insurance company (such as commercial vehicle and property insurance)

    • Improving the safety and security of your company with security systems, automatic fire sprinklers and employee safety training

    • Asking your agent for information regarding other discounts you may qualify for, such as discounts for association memberships

 

BOP insurance is one way of combining a number of coverages in one policy in order to take advantage of packaged pricing, but there are other methods as well. Be sure to work with a knowledgeable business insurance agent who can help you review a number of options for getting the coverage you need at a price you can afford.

 

Since a BOP may not cover all of your business insurance needs, you will want to evaluate the benefits of purchasing your insurance policies separately against the option of buying a BOP and adding on any additional coverage you may need.

 

Univision Insurance can provide all the help you need to compare business owners policy quotes with other options and find the coverage that best suits your needs and budget.

How to Get BOP Insurance

Virtually every insurance company who writes business coverage will sell a BOP. Before shopping for BOP insurance, put the following information together:

 

  • A description of your business operations

  • The full legal name of your business

  • Your legal structure -- corporation, LLC, etc.

  • Mailing address

  • Physical address

  • Contact person with phone number and email address

  • Tax ID number

  • The number of square feet you occupy

  • The replacement cost of your real property if you own your own building

  • The replacement cost of your business equipment

  • The average maximum value of your inventory, if your inventory value fluctuates

  • Your projected business income for the next year

  • Your projected payroll for the next year broken down by duties

  • A schedule of owned vehicles with serial numbers and lien holders, if any

  • A list of drivers with dates of birth and driver's license numbers

  • The amount of cash and securities, if any, you keep on premises

 

Whatever agent you work with will need this basic information to obtain quotes on your behalf. Be sure to request that your agent provide multiple quotes so you can be confident that you are getting the maximum coverage and value for the best price.

When Is the Best Time to Shop for a BOP?

You can shop at any time. But something many business owners do not realize is that there are peak periods in the insurance industry. Many companies like their coverage to start on the first of a month. A large percentage of companies want their insurance program to start on January 1st or July 1st because they want it to run concurrent with their fiscal year.

 

The consequence is that businesses seeking quotes with these inception dates may get less competitive quotes because their applications tend to "get lost in the shuffle" of a large number of other applications which have to be underwritten and priced at the same time.

Unless you have a reason to do otherwise, pick a mid-month anniversary date for your BOP insurance in any month other than June or December.

Start Comparing Business Owner Insurance Quotes

BOP insurance is a package policy that is an economical solution for small to mid-size businesses. However, you still need the advice and input of an agent to help you with the many decisions you will have to make in setting up a complete insurance program.

 

To compare quotes and find the best policy for your specific needs, contact Univision Insurance. Your agent can help you find the business owners policy that is right for you and your company.