Every business, large and small, needs to purchase commercial insurance to prevent against a variety of risks. However, procuring the right coverage can be a tedious and time consuming process, particularly for small and medium sized businesses. To help alleviate this issue, these businesses may be eligible to buy an all-in-one plan called a business owner’s policy, or a BOP. To qualify, a business must have no more than 100 employees and no more than $1 million in revenue. Bigger companies will likely have to buy insurance policies a la carte.
A BOP bundles several coverages into a package for comprehensive protection, as well as lower premiums in many cases. All BOPs combine property and liability coverage with a host of other customizable add-ons coverage options. Let’s take a look at which coverages are generally available:
• Property insurance: Covers buildings, furniture, equipment and inventory owned (and sometimes leased or rented as well) by the business.
• Liability insurance: Covers any bodily injury or property damage suffered by a third party on the business’ property. This can also cover legal expenses.
• Medical payments insurance: Covers any third party medical expenses that result from a liability claim.
• Loss of income insurance: Covers lost income in the event that daily business operations are interrupted due to a covered loss. This can include financial obligations such as rent and payroll.
• Equipment breakdown insurance: Covers pieces of equipment — such as computers or break room appliances — that fail or become damaged due to a covered loss.
• Data breach insurance: Covers online resources, such as databases, from hackers and other covered losses.
• Employment Practices Liability Insurance: Covers a business in the event that an employment-related claim is made involving alleged acts of harassment, discrimination, wrongful termination, law violations etc.
Note that commercial auto insurance and worker’s compensation insurance will most likely need to be purchased separately from a BOP.
Make sure your clients have the business insurance coverage they need. Call Wilber-Price Insurance Group at (800) 797-2016 for more information on business insurance packages.