How To Find the Right BOP Insurance Policy For You

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Small business: Happy owner or waitress of a cafe showing open sign

YONKERS, WESTCHESTER COUNTY, NY — August 23, 2022 —Owning, running, and operating a business is no small feat. Sometimes, it feels like raising a child, and that same age-old adage applies just as well: it takes a village. However, insurance policies can help alleviate some stress on business owners. This is because the proper collection of insurance policies and plans can protect against events that would otherwise be financial disasters. While it can be easy to think that comprehensive insurance plans are more beneficial to larger organizations and institutions, insurance is just as vital for small and medium sized businesses as it is for behemoth conglomerates.

Arguably, the right insurance plans are more critical for small business owners and entrepreneurs because their cash flow and revenue is typically significantly lower. In turn, a single lawsuit, environmental event, or another unforeseen mishap could bring the business to its knees financially speaking. On the flip side, a significant corporation that failed to account for a specific type of insurance may very well have a sufficient enough cash flow that the pay-out is no more than a little bump in the road. 

If you’re a small business owner trying to navigate the wild world of insurance, you may want to consider a BOP insurance plan, otherwise known as a business owner’s policy. 

The Basics of a Business Owners Policy 

A business owner’s policy is a compilation of a few different types of insurance plans. The policies and plans included are often the foundational insurance policies that most organizations, regardless of size, need to have. Because they’re so common to bundle together, insurance companies have already done that part of the work and created a single product, known as a business owner’s policy. 

Typically, at least three different policies are wrapped into a single BOP insurance plan. Those three plans are commercial property insurance, general liability insurance, and business interruption insurance. 

The commercial property insurance plan protects the land, the building, and equipment. There are a few specifications that need to be made here, but in general, this piece of the policy is in place to protect your actual physical property. 

General liability insurance is especially important if you’re hosting clients or customers on your property, as this is the part of the plan that will kick into action in the case of a 3rd party lawsuit seeking compensation for physical harm. 

Finally, the third element commonly found in BOP insurance is business interruption insurance. This covers a portion of lost income and revenue associated with any event that disrupts your business’s operation. 

 In the case of vandalism or theft, for instance, the property itself is protected under the commercial property insurance plan. At the same time, lost income would only be covered if a business interruption policy is also included. 

Knowing if You Qualify for a BOP 

Because of how BOP insurance is designed, it targets small business owners. This is sort of tied to the generality of BOP insurance. While BOP insurance plans can be customized and tailored with additions and endorsements to the coverage, they typically aren’t detailed enough to cover the more complicated risks associated with larger businesses.

There are a few easy metrics to look at that can help determine if you qualify to purchase a BOP insurance plan. If you employ less than 100 people, make less than $10 million in annual sales, and have a physical operation space, you are likely a prime candidate for a business owner’s policy. 

How a BOP Simplifies Your Life

A business owner’s policy is specifically designed to help ease the life of small and medium-sized business owners. This is because it grants a wide variety of coverages all underneath a single policy. 

This makes a BOP plan much easier to manage than having a long list of individual policies that need continual upkeep. 

Do Your Shopping

BOP insurance has become extremely popular, and many major insurance providers now offer  BOP plans. 

Therefore, if you qualify for BOP insurance, don’t just jump at the first offer you see. Take your time exploring the marketplace, and find a custom policy that works for your unique business model. 

Wrapping up on Buying Your BOP

Insurance is one of those things that you hope you never need, but you’re sure glad to have when you do. Suppose you’re a small or medium-sized business owner. In that case, a BOP insurance plan can provide you the coverage you need, help save you money, and offer you business-saving protection in the case of something unforeseen. 

eHeziHow To Find the Right BOP Insurance Policy For You

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