Most companies understand the potential advantages of purchasing a business owner’s package, or BOP. This type of policy is designed for a variety of owners who wish to bundle their insurance products, rather than purchasing separate property and liability coverage. For eligible small and medium-sized businesses, a BOP is a comprehensive package that can be a potential bargain while offering a flexible, customized coverage package to fit the special needs of your business, all for one affordable premium.
How is the cost of a BOP determined?
Many insurers use a rating system; this includes several factors in determining what is a justifiable charge for this specific insurance alternative. Many variables come into play, including multi-state policies, territory look-up by ZIP code, or city and county. Rating agencies will then use detailed calculation worksheets as well as any endorsements, along with previous cancellations and renewals, which can all play a part in their final determination.
Business insurance is a necessity for even small companies in order to protect and maintain their financial health. Commercial General Liability insurance coverage should be the cornerstone of your BOP as it protects you from paying defense costs or any ensuing damages levied against you if an employee, customer, or anyone else sues you for any business-related claims.
You should include property insurance to protect business equipment, furniture, appliances and any physical assets that the business has. Coverage is also available for several other types of loss; loss of income, medical payments, rented vehicle and more are also available through many BOP insurance packages.
When considering a Business Owners Package, realize that not all BOPs offer uniform coverage. Talk to your agent about whether your BOP meets your essential business needs. Rating agencies and insurers use their rating modules to help determine how to get you the best rates on insurance and do their best to accommodate you in every way.