A business owner’s policy, typically called a BOP, combines major kinds of small business insurance together. This package deal can help simplify buying insurance and possibly help earn some bundling discounts. Here at Mooney Insurance, many of our prudent business clients ask if their BOP will provide enough coverage to protect their business fully. The best answer might depend upon the nature of their company and tolerance for risk.
Will a BOP Fully Insure Your Small Business?
Typically, a basic BOP includes these three important kinds of small business coverage:
- Property insurance: This covers buildings and building contents owned by the company.
- Business interruption: This part of the policy can replace lost income in case of a covered hazard, such as a fire.
- General liability: Business liability insurance will help pay for property or injury claims against your business because of some failure on the part of products or services.
Note that the small print within various policies can vary considerably. Some insurers also tailor policies for specific clients or even customize coverage for individual clients. A BOP will generally offer you very broad coverage for the most common threats.
Business Hazards a BOP Won’t Cover
Along with the hazards a BOP does cover, it’s important to pay attention to the threats that it will leave out or exclude. Some obvious examples of issues that a BOP will typically not cover include:
- A BOP doesn’t cover commercial car and professional liability insurance. If you or your employees use company vehicles for business, you will need to have them covered. Any professionals may also need to purchase E&O, malpractice, or other kinds of professional liability coverage.
- A BOP also won’t include such employee benefits as health, disability, life, or workers compensation insurance. You will need to shop for these kinds of coverage separately.
- Also, property insurance might extend to your company’s computers and other electronic equipment. These days, businesses also need to consider the value of the information contained within those computers, and to cover that, you may need specialized cyber insurance.
- The property insurance included in a BOP does not usually cover floods. Any local business owners who have experiences with flash floods in Tucson will understand the importance of this kind of protection.
- Also, some businesses may need specialty coverage for the particular risks taken in the course of typical operations. For instance, companies that ask employees to use their own cars for business might need non-owned car insurance and not just commercial car insurance.
Why is Proper Insurance Vital for Businesses?
Most business owners would rather focus on their business than their insurance policies. At the same time, businesses purchase insurance to manage risks. Without the right coverage, one fire, accident, or mistake can cause a devastating loss. That’s why it’s so important to spend time with an experienced business insurance agent. The agent should take the time to learn about your company, analyze your unique risks, and suggest the right combination of protection. In that way, you can focus on business because you will know that you don’t have to worry about unexpected hazards or accidents.
We Will Provide the Right Small Business Insurance
Here at Mooney Insurance, we want to learn about your growing business. Not only will we work with you to analyze risks, but we will also help you shop the market for the best prices from top business insurers. We can also offer suggestions about ways to bundle policies to take advantage of bundling discounts. Call us today at 520-751-0502 or request a quick quote online.
