- March 3, 2016
- Posted by: Liam Dai
- Category: Business Owner Insurance
The last thing a business owner needs is more financial headaches. While your inventory may be well-stocked and your employees are well-trained, are you secure in knowing how the future of your business will be? The real answer is that no one truly knows what’s around the corner for their business. Therefore, it is a good idea for all businesses to insure their livelihood with insurance. Let’s take a look at one of the most common ways businesses secure their future: a Businessowners Policy.
What is a Businessowner’s Policy?
Insurance companies offer a wide variety of insurance to businesses. The only problem is determining which ones are right for your business. That’s where a businessowner’s policy, otherwise known as a BOP, comes in. BOPs offer insurance policies that combine coverage from all major property and liability risks—all in one package. This is perfect for small and medium businesses, as most of these companies tend to face the same degree of risk; for larger companies and more specialized businesses, further customization of insurance plans and packages is a wise choice, as well.
Why Should I Consider a BOP?
While it’s always wise to be covered, here are a few questions to consider if you’re still on the fence for a businessowner’s policy:
- Does your business have a physical location? This includes whether the business is run out of your home, a rented/owned office, or another type of work facility.
- Does your industry typically deal with lawsuits, especially ones related to your workplace?
- Does your business have expensive assets that would be crippling to your future if they were stolen or damaged? This includes digital assets, equipment, cash, inventory, customer data, etc.
If you answered ‘yes’ to any of these questions, then you are certainly in need of a BOP.
What’s in a BOP?
There’s a few main components to a BOP that are common to all of these packages:
- Property insurance for the buildings and property owned by the business
- Business interruption insurance
- This covers the loss of income that directly results from a catastrophe.
- It also may include the extra expenses accrued by operating out of a temporary/stopgap location
- Liability protection
- This covers the legal responsibility of your company for harm caused to others.
- Examples include: negligence, pollution, accidents, etc.
What’s interesting to note is that a BOP does not include everything that a business needs to protect itself; BOPs include only the most common. Don’t forget that you’ll still need to purchase professional liability, automotive insurance, health insurance, disability insurance, and worker’s compensation insurance—just to name a few…
However, a BOP can make a business owner’s life easier, tailoring it beyond the generic offerings to extend toward each business’ individual demands and coverages, such as data breach insurance
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As you can see, fine-tuning a BOP for your business isn’t as easy as it sounds. Let the experts at RiskBlock assist you and keep your business protected. Click here to begin protecting your business the right way.