What does a Business Owners Policy or BOP Not Cover?
How do small companies buy insurance? Many businesses buy a business owner’s policy. This kind of protection is often called a BOP. Insurers will offer lower rates for the coverage included in the BOP. This solution may offer a simple and cheaper way to buy insurance.
A BOP may make sense for a small company. Stores, dental offices, and cafes all may find that a BOP suits their basic needs. Still, it may not provide enough insurance.
What does a BOP cover? Common coverage in a BOP might include liability, property and business interruption insurance. Some agents will customize a BOP to suit their clients. They may be able to tailor protection for the business size, industry, or location.
What Won’t a BOP Cover?
Still, a BOP may not include all the coverage that your company needs.
These kinds of insurance are not likely to come with a BOP:
- Professional liability: Some professionals need to protect themselves against claims that they did not perform their duties properly. Medical professionals may need malpractice insurance. Finance professionals might have to buy errors and omissions coverage. A BOP usually won’t come with this kind of protection.
- Cyber insurance: Today’s companies value digital information. They also value the security of customers’ information. Cyber insurance protects businesses against data breaches or the loss of computer systems.
- Business car: A company’s cars have to have insurance against liability or property loss. Personal insurance isn’t usually enough. A company may need business car insurance too.
- Employee benefits: A BOP won’t usually contain workers’ compensation or health insurance either. Employee benefits must usually come separately.
How to Buy Business Insurance?
Most business owners understand that they need insurance to protect their company. They might also need to protect their employees. Most owners would rather focus their energy on running their company. The right insurance can help them focus by giving them peace of mind.
Find an agent with experience insuring covering similar companies. They should suggest policies and help compare rates. The final choice of a BOP and other business insurance depends upon the owner. A good agent can help the company save time and money.