How to Save Money on Insurance with a BOP

Protecting your business with an insurance policy is one of the most important responsibilities you have as a business owner. However, since insurance is supposed to save you money, it makes sense that you will look for ways to save money on a policy. It is important to find an affordable policy without sacrificing important coverage needed to protect your business.

A business owners policy (BOP) is an insurance policy specifically tailored to cover small businesses in low risk industries. This type of policy allows you to combine coverages into a single policy all in one place.

What Does a BOP Cover? 
A basic BOP combines two important coverages:

• General Liability Insurance: General liability insurance covers claims against your business concerning bodily injury, property damage and personal or advertising injury. If someone is injured on your property, this insurance can cover their medical bills along with protecting your business in case of a related lawsuit. 

• Commercial Property Insurance: Commercial property insurance covers your business’ physical location and its contents in case of loss or damage due to fire, wind, hail, lightning, falling objects, smoke, theft, vandalism and more. This is crucial to protect the physical assets of your business so that you can replace your items and get back to operation quickly after a disaster.

How Much is a BOP?
As with other insurance policies, the price of a BOP varies depending on your:

On average, however, BOPs are more affordable than purchasing insurance coverages separately. These policies also allow you to add different insurance coverages so that you can tailor it specifically for your business’ insurance needs.

Be sure to speak with an insurance agent about your business and your BOP needs. Every business is different and needs a policy designed to fit them. An agent can help you evaluate the risks your business faces so that you can gear a BOP for comprehensive coverage at an affordable price. Also ask about discounts you or your business may qualify for. Although adding more insurance to your BOP typically raises the cost, it also allows you to protect against potentially expensive accidents, disasters and lawsuits.

Should I Add Coverage to My Business Owners Policy? 
Although the goal of a business owners policy is to save money on coverage, this doesn’t mean you should skip out on important coverages that don’t automatically come with the policy. You can also save money by adding insurance to your BOP such as:

Additional coverage you may add to a BOP includes:

Professional liability
Professional liability insurance covers claims against your business concerning professional negligence that may cause a client money. If your business offers specialized services, such as accounting or medical services, this insurance can protect you and your employees in case of a related lawsuit. In the medical field, this insurance is known as medical malpractice insurance although it is also commonly referred to as errors and omissions insurance.

Product liability 
Product liability protects your business from lawsuits regarding bodily injury or property damage your products may cause. Whether you manufacture or sell products, this insurance can help cover you in case of a related accident.

Commercial Auto Insurance 
Commercial auto insurance covers vehicles owned or used by your business for work purposes. This insurance includes a lot of coverages similar to personal auto insurance including:

Workers Compensation 
Workers compensation insurance covers employees who are injured on the job. It can protect the business from a lawsuit as well as providing the employee with medical bill compensation, wage replacement, disability benefits and more.

Liquor liability 
Liquor liability insurance covers bodily injury and property damage a patron of your business may cause after purchasing or drinking alcohol from your establishment. If you serve drinks in your bar to a man who then starts a fight outside and injures someone, liquor liability insurance can protect your business from a related lawsuit.

Umbrella liability 
Umbrella liability insurance fills in the gaps left by your other liability policies. If your general liability insurance reaches its limit, for a single claim, for example, umbrella liability insurance will step in to cover remaining expenses.