The basic coverage in a typical BOP include:
Real property coverage (if you own your own building)
Employee dishonesty
Business personal property insurance
General liability coverage for the premises and operations
Loss of income (business interruption)
Medical payments
Equipment off premises
Coverage for more than five locations
The following are usually offered on an optional basis:
Hired and non-owned autos (if you have a separate auto policy this is better included there)
Loss of money and securities
Loss of electronic data
Employment practices liability
A BOP is not designed for a large, multi-location company with a need for a complex insurance program. However, it can be ideal for a smaller, one-location business.
Will a BOP Insurance save me money?
While all businesses need to control costs, small and medium-sized businesses often have more financial concerns and tighter margins than larger companies. You can often save on insurance rates by taking a number of measures. These include:
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Combining the critical coverage you need in a BOP
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Asking your agent for information on discounts. You may qualify for discounts based on:
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Combining multiple policies under one insurance company (such as commercial vehicle and property insurance)
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Improving the safety and security of your company with security systems, automatic fire sprinklers and employee safety training
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Asking your agent for information regarding other discounts you may qualify for, such as discounts for association memberships
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BOP insurance is one way of combining a number of coverages in one policy in order to take advantage of packaged pricing, but there are other methods as well. Be sure to work with a knowledgeable business insurance agent who can help you review a number of options for getting the coverage you need at a price you can afford.
Since a BOP may not cover all of your business insurance needs, you will want to evaluate the benefits of purchasing your insurance policies separately against the option of buying a BOP and adding on any additional coverage you may need.
Univision Insurance can provide all the help you need to compare business owners policy quotes with other options and find the coverage that best suits your needs and budget.
How to get BOP Insurance
Virtually every insurance company who writes business coverage will sell a BOP. Before shopping for BOP insurance, put the following information together:
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A description of your business operations
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The full legal name of your business
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Your legal structure -- corporation, LLC, etc.
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Mailing address
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Physical address
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Contact person with phone number and email address
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Tax ID number
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The number of square feet you occupy
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The replacement cost of your real property if you own your own building
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The replacement cost of your business equipment
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The average maximum value of your inventory, if your inventory value fluctuates
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Your projected business income for the next year
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Your projected payroll for the next year broken down by duties
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A schedule of owned vehicles with serial numbers and lien holders, if any
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A list of drivers with dates of birth and driver's license numbers
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The amount of cash and securities, if any, you keep on premises
Whatever agent you work with will need this basic information to obtain quotes on your behalf. Be sure to request that your agent provide multiple quotes so you can be confident that you are getting the maximum coverage and value for the best price.
When is the best time to shop for a BOP?
You can shop at any time. But something many business owners do not realize is that there are peak periods in the insurance industry. Many companies like their coverage to start on the first of a month. A large percentage of companies want their insurance program to start on January 1st or July 1st because they want it to run concurrent with their fiscal year.
The consequence is that businesses seeking quotes with these inception dates may get less competitive quotes because their applications tend to "get lost in the shuffle" of a large number of other applications which have to be underwritten and priced at the same time.
Unless you have a reason to do otherwise, pick a mid-month anniversary date for your BOP insurance in any month other than June or December.
Start comparing business owner insurance quotes
BOP insurance is a package policy that is an economical solution for small to mid-size businesses. However, you still need the advice and input of an agent to help you with the many decisions you will have to make in setting up a complete insurance program.
To compare quotes and find the best policy for your specific needs, contact Univision Insurance. Your agent can help you find the business owners policy that is right for you and your company.