BOP

What coverages do you have to add to a BOP to protect your Atlanta business?

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There are some coverages that you'll need to purchase separately or add to your BOP.

We recently talked about the magic that is a business owner’s policy (aka BOP) and how they make insurance wonderfully convenient for businesses. But it’s important to note that there are some things that simply aren’t covered in a business owner’s policy. BOPs (catchy nickname, right?) typically cover general liability, commercial property, and business interruption insurance. However, the risks covered by the three types of insurance bundled into a BOP may not be enough to fully cover your business. There are lots of other disasters out there. To help you ensure that your business is fully insured, we’re going to go over some coverages and losses that aren’t bundled into a BOP.

Coverages that can be purchased as separate policies:

There are some coverages that you would purchase as separate policies for your business. Here are some coverages that you might want (or need) to get for your business.

Workers’ compensation:

Workers’ comp insurance is essential for businesses. It protects your employees if they get hurt or get sick because of their jobs. It can provide them with medical payments so that they can get back on their feet. It also reimburses them for a portion of the wages that they lost while they weren’t able to work if they’re medically approved to take time off. Depending on your business and state, you might be required to carry workers’ comp insurance.

Group health insurance and disability insurance:

These coverages can be procured separately if you want your employees to be able to get health insurance through their jobs.

Professional liability:

Professional liability can help you if you’re in a business where you offer advice and then politely ask for money. If a customer accuses you of negligence, giving bad advice, or not acting in good faith, they might sue you, professional liability insurance can help you cover the costs of the lawsuit.

Coverages that you can add to your BOP:

BOPs can bundle more than general liability, property, and business interruption insurance. There are other types of insurance that can be added to a BOP policy if you so choose. Some of those coverages are…

Crime coverage:

Crime coverage includes protection for a variety of theft that your business could face, including employee theft and commercial burglaries. Usually, you can add between $1,000 and $5,000 of coverage to your policy.

Data breach coverage:

With how dependent businesses are on technology and computers, data breaches are a very real risk. That’s why it’s important to protect your business from cyber risks. Adding data breach coverage to your BOP will help your business with the costs of…

  • Telling people who have had their information stolen from your company that their information has been stolen from your company.
  • Hiring consultants who can help you sort out the ensuing chaos.
  • Defense and settlement costs from potential lawsuits.
  • Replacing income that you lost due to the breach.
  • Extortion/ransom (Believe it or not, holding computer files or systems hostage and demanding money for their release has become a favorite of hackers, as far-fetched as it may seem. It’s a real thing.)

It’s important to make sure that you understand exactly what your BOP will and won’t cover. If there are any areas of risk that are not included in your BOP, you need to fill your coverage gaps. Disasters have a nasty habit of striking those areas that aren’t protected by insurance. Don’t underestimate the power of Murphy’s Law – whatever can go wrong, will go wrong. You don’t want to fall prey to a loss that isn’t covered, so review your insurance carefully and bolster any areas that are missing coverage.

Do you need to get some business insurance? We’d love to help you out with that! We can help you identify the risks that your business faces and build an insurance plan to protect you from them. We can get you some business insurance quotes for free. All you have to do to get started on your quotes is fill out our online quote form or give us a call today.

What’s a business owner’s policy and can I get one for my Atlanta business?

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A business owner's policy, or BOP, combines three different types of business insurance.

A business owner's policy, or BOP, combines three different types of insurance.

Have you ever seen one of those commercials for a hair care product that claims it’s shampoo and conditioner, all in one? Believe it or not, there’s an almost-equivalent for small-to-medium sized businesses when it comes to business insurance. It’s called a business owner’s policy, but since no cool coverage is complete without a nickname or acronym, it’s called a BOP. Basically, a BOP is handy to have because it combines several coverages into one convenient policy. You can get the coverage you need for your business in a simple, neat package – and it’s way better than 2-in-1 shampoo/conditioner.

Let’s dig deeper into this insurance mystery.

What does a business owner’s policy include?

There are three main coverages that a BOP can bundle together for your insurance convenience. Those coverages are…

1. Commercial property insurance.

What it does: Commercial property covers losses that happen because of common perils, like fire. It can cover you for your office equipment, furniture, inventory, machinery, raw materials, computers and other such essential business items. Plus, you know, the building itself.

2. General liability.

What it does: General liability is your “slip-and-fall” insurance. It covers your legal responsibility if your business causes harm to someone else, up to your policy’s limit. It will usually cover attorney fees for defending your business in court and the medical fees of anyone to whom your business caused bodily harm. It can also help in the event of a property damage claim.

3. Business interruption insurance.

What it does: Business interruption puts lost income back in your business’s pocket if you get hurt by a covered disaster that causes you to close temporarily. While property insurance helps you rebuild your business, BII helps you make sure that there’s still money in the bank when you have your grand reopening. It reimburses you for lost income.

Together, these coverages form the foundation of a small business insurance plan. Of course, they don’t cover every disaster or loss that could befall your business, so you may have to consider getting additional coverages if necessary.

Is my business eligible for a business owner’s policy?

Now, not every business is a candidate for a BOP. As we said before, BOPs are most appropriate for small to mid-sized businesses. Apart from that, there are a few checkmarks your business may need to meet before being stamped for BOP approval.

  • A physical location (whether it’s your home or premises – you may be able to insure a home-based business with a BOP)
  • Property that can be swiped (think product, cash, furniture, digital property, etc.)
  • Risk of lawsuits
  • Fewer than 100 minions employees
  • Fewer than $5 million in sales annually

Aside from these basic qualifications, there are a few other things that a carrier will consider before declaring you BOP-worthy. You may or may not be BOP-able depending on your type of business, the size of your main location, your revenue, and the class of business you are. It might seem like a lot of hoops to jump through, but it’s all in the interest of making that your business has the coverage you need.

How much will a BOP cost?

The premiums for BOPs depend, of course, on a few things. Your business’s eligibility factors play a part in your insurance rates. The financial stability of your business does, too. The building itself also gets considered, as do security features and fire hazards. The general rule of thumb for insurance is the more risk you have, the higher your rates. Insurance companies are highly allergic to risk, remember.

Pro tip: You might qualify for a discount if you have a security system. However, there are a few things you should know before hiring a company to install a commercial security system.

While insurance rates vary from business to business, the bottom line is that it’s important to make sure that you have enough coverage for your business and that there are no gaps in your insurance. That might mean adding some extra coverage to a business owner’s policy or forgoing a BOP entirely in favor of getting bigger policies.

BOPs are great when it comes to protecting small businesses. If you’re BOP-able, you get to enjoy commercial property, general liability, and business interruption insurance all bundled into one convenient policy. It is, however, important to consider that you may need to add coverages to your business owner’s policy. If you think your business might be a candidate for a BOP, congratulations! Insurance just got a whole lot easier.

Want to get a free quote on your business insurance? BOP or no BOP, we’d love to help you find the insurance your business needs to protect it from the risks you face every day. We’d love to help you save on said insurance, too. To reach one of our friendly agent-folk, all you have to do is fill out our online quote form or give us a call today. Then we can help you get started with getting your insurance!