If you own a small business, chances are you keep a close eye on the cost of your business insurance. Getting the best coverage at the best rate may have even become a bit of a crusade. There are several ways to save money on business insurance, but there’s one method you may not have yet considered (and if you have, well, then you’re just ahead of the game.)
It’s called a BOP, or business owner’s policy. We’ll explain what a BOP is, go over how it can save you money on your insurance, and let you know about a few things you should consider when buying business insurance.
What is a business owner’s policy?
A BOP is what’s called a package policy. What that means is that it includes several different coverages all bundled into one policy. They’re intended for small to medium-sized businesses.
BOPs typically include property insurance, general liability, and sometimes business interruption insurance. So, rather than getting each of these coverages separately, you can get them all from one place at the same time.
Convenient, right? But that’s not even the best part.
How can a BOP help you save money on your business insurance?
Here’s the best part:
A BOP can help you save money on your business insurance. But the question is, how?
The thing is that it’s usually less expensive to buy your coverages together instead of getting them separately. It’s kind of like going to a restaurant and ordering a dinner entrée instead of getting a whole bunch of sides and appetizers. You get the food you need both ways, but getting the entrée is probably less expensive.
Okay, that analogy was a bit corny. But you get the point.
Anyways, insurance companies love it when businesses get more than one line of coverage from them, so that’s why a BOP may be a good option when it comes to saving money on business insurance.
Now, keep in mind that not all businesses are eligible for business owner’s policies. Every insurer has different eligibility requirements, but across the board business owner’s policies are intended for small to medium-sized businesses. You have to have a certain amount of employees and make a certain amount of revenue or sales. But even if you can’t get a BOP, you can still save money by investigating a commercial package policy, which is similar to a BOP but far less strict about eligibility requirements.
Anyways, it may seem like a better plan to shop for each type of coverage individually and choose the lowest price for each. But it’s definitely worth getting quotes for a business owner’s policy to compare prices. You have to find out what makes the most sense for your business.
Does your business have enough coverage?
Another thing to consider about BOPs:
You may need to think about adding coverages to your business owner’s policy to make sure your business is fully protected from all of the risks you face.
For example, you may want to add crime coverage to your BOP to protect against risks like employee theft. Or perhaps you’d want to add data breach coverage if you store clients’ personal information.
Now. That’s not all.
Your business may need to get separate policies entirely to cover other risks. Workers’ compensation insurance has to be purchased as a separate policy, not added to a BOP. Same thing with flood insurance.
Here’s the reason that we say all of this:
When you’re considering getting a BOP, it’s important that you consider all of the risks your business faces and the protection that the BOP offers. You may need to cover some gaps and make sure that your business is ready to handle anything that could come your way.
And, of course, you have to consider the costs of those additional coverages when you’re shopping for your business insurance.
So. That’s how a BOP can help you save money on your business insurance and some food for thought about extra coverages. When you’re getting business insurance, it’s important that you consult an insurance expert that you can trust. And we would love the opportunity to become that trusted advisor for your business.
We can help you get quotes for business insurance and make sure that you have the insurance you need to fully protect your business. All you have to do to get quotes or get in touch is fill out our quote form or give us a call.