How a Business Owners Policy Can Save You Money
When looking into buying insurance for your company the first thing you need to do is assess your risks. Through underwriting, insurance companies determine the level of risk they’ll accept when issuing policies. Theyll review your application and thereby determine whether they will provide all, or a portion of the coverage being requested.
Premiums that are paid for insurance vary among different insurance companies, and they also depend on a number of risk factors, including the location of your business, the type of building in use, availability of local fire protection services, along with the amount of insurance being purchased. Purchasing a business owner’s policy can also help you to reduce the price you pay for your separate insurance policies.
Why you should consider a Business Owner’s Policy (BOP)
Insurance can be purchased either separately or in a package called a BOP. Purchasing separate policies from different insurers will often result in higher total premiums. A BOP combines typical coverage options into a standard package, and is offered at a premium. Typically BOP’s consist of combining property, general liability, vehicles, business interruption and other types of coverage common to many similarly modeled types of companies (although companies doing a different sort of business altogether can also find the BOP useful).
BOP’s help to simplify the insurance buying process while saving you money. However, not every type of insurance is included in a BOP, so if your business has unique risks, you may require additional coverage. In other words, make sure you understand the extent of coverage in any BOP you may be considering.
Over time your company will grow and perhaps change, so assess your insurance coverage on an annual basis. Also, as your business grows, chances are your liabilities do as well. The last thing you want to happen is that you end up being underinsured at the worst possible time, and thats when a disaster strikes.
If you end up purchasing or replacing equipment or decide to expand your operations, it would be a good idea to contact your insurance broker to discuss these changes in your business and how they affect your current coverage on your business owner’s policy.