New year, new goals, and now that we’re a month into 2021 Cushman Insurance knows that you may be ready to put your dreams into action! For some that may mean opening up a small business to the public! Our question is: Is your business protected if something unexpected happens?
With almost 100 years of experience insuring local businesses throughout Massachusetts, we know what type of insurance coverage a small to medium-sized business needs.
In some ways, a Business Owner’s Policy (BOP) is like a homeowner’s policy for a business. BOPs combined many of the same basic coverages needed by a small business into standard packages designed for individual industries. That’s why Cushman Insurance is breaking down what a BOP is and how to know what insurance policy is best for your small business.
What is a BOP?
A business owner’s policy, or BOP, is a combination of commercial property insurance and general liability insurance for your business. This is basically cheaper than when you’re buying the two policies separately.
Without the right small business insurance, a business owner would be required to cover the costs of liability claims with their own money. That’s why a Business Owner’s Policy (BOP) could be the right insurance to have – it’s important to think about the tools, equipment, materials, and technologies that are needed to run a business. If the business has resources that can be damaged then it’s important to know what type of insurance coverage protects the assets.
When Do You Need a BOP?
If you have a business that has under 100 employees and less than $5 million annual sales, you’ll need a BOP if you’re looking to live more and worry less when it comes to unexpected accidents. The commercial property insurance part of the BOP will protect your building from any damage or loss.
Do Remote Businesses Need BOP Coverage?
If your business and/or employees are home-based, the short answer is yes; your company needs insurance above a standard homeowners’ policy. Homeowners’ policies are not designed to cover the specific needs of a business and many homeowners’ policies include exclusions for home-based businesses.
In the case of your employees all working remotely, your business will need general liability coverage at the very least. Additionally, since BOPshave certain coverage exclusions, other coverage may be necessary.
Contact your Cushman Insurance agent for more information in regards to making sure your home-based business has the proper protection.
What Makes Up a BOP Policy?
A BOP includes, but is not limited to:
Property Insurance
Liability Insurance
Business Interruption Insurance
Crime Insurance
Equipment Breakdown Insurance
Medical Payments Coverage
Personal and Advertising Injury
Having a BOP is like having general liability insurance and commercial property insurance at the same time. With general liability insurance, you can protect your business against customer injury or damage to the client in any way. Cushman Insurance understands the importance of protecting your business, and your personal assets, from legal battles in an unanticipated accident in which a client hurts him or herself while using your products or services.
What Are the Eligibility Requirements?
Not all small businesses are eligible for a BOP. Before you can purchase a BOP, you must ensure that your business has a low industry risk. A BOP is ideal for small businesses that want to protect themselves from the costs of legal lawsuits.
What Are the Benefits?
The major benefit of having a BOP is that you can focus on your business without worrying about not having the proper protection in place. Your focus should be on expanding your business, not protecting your assets.
Overall, a BOP can provide your business with liability protection and business property protection. This refers to libel and slander accusations against your advertisements. With business property protection, a BOP can protect your trademark equipment in case of loss or damage.
Is Small Business Insurance the Right Fit?
Small Business Insurance helps cover the costs of liability and property damage claims. It can also replace lost income if the business has to close temporarily. Small Business Insurance policies can be tailored to fit the needs of a business.
Other than having a BOP protecting your small business, it’s also important to have coverages like:
Commercial Auto Insurance
Commercial Umbrella Insurance
Commercial Flood Insurance
Is It Worth It to Consider Packaged Policy Coverage?
Cushman Insurance can help save on business insurance by offering a packaged policy. A business can save with a BOP because there is three insurance coverage within one policy. Buying three separate policies would cost your business more money and can be more difficult to manage.
With a new business, it’s important that business owners can take the next step to protect their assets by working with a licensed insurance company like Cushman Insurance. As a small business client, our team will not only help you find quality coverage but will also support you throughout the claims process quickly and hassle-free.
Contact Cushman Insurance today to learn more.
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