Shopping for business insurance isn’t necessarily exciting, but it is important. Having the right coverage often means the difference between your company being okay after a disaster or having to shut down. Thankfully, a Business Owner’s Policy (BOP) can make the process a lot easier and less expensive. Here are three surprising benefits of this type of policy.
Benefit #1: Multiple Types of Coverage in a Single Policy
Perhaps the most important benefit of a BOP is that it combines multiple kinds of business insurance policies into a tidy package. At a minimum, it includes property damage coverage for buildings and equipment that you own. Think protection for fire, theft and other damage. Policies might also allow you to recoup business costs that you might face during a temporary closure.
It also features a set amount of liability coverage in case your company accidentally causes harm to another person or their property. This added convenience of having everything in the same policy is probably the greatest benefit of a BOP to most small business owners.
Benefit #2: Includes Coverage You Might Not Know You Need
There’s a good chance you need a specific type of insurance coverage for your business, but don’t know it even exists. That’s where a BOP is especially valuable. Most Business Owner’s Policies provide coverage for equipment items like computers, and many companies offer the option to tailor your policy to your exact needs.
There’s also usually a provision for business interruption insurance, which offers extra financial help if your company has to temporarily close and loses income. Even though you might not know these protections exist, they are part of this overall package.
Benefit #3: The Most Affordable Solution
Most small business owners consider cost a large factor when shopping for insurance coverage. Bundling business insurance coverage with a BOP is generally by far the most affordable option. Think about it for a moment. Paying for all of those policies as separate packages generally costs thousands of dollars more and is less convenient. Who wants to deal with that? Instead, with a BOP, insurance companies charge a single rate for multiple types of coverage. That gives you the chance for better affordability.
Plus, it is important to know that BOPs are available in nearly every state for nearly every time of business. Of course, there are some conditions to this making it important to have a conversation with your local agent on the best coverage solution for your situation.