How to Save Money on Business Insurance
How to Save Money on Business Insurance
Business owners have unique insurance requirements that vary by industry and location. Purchasing separate policies can be confusing and costly, often involving several insurance providers and personnel who can understand and keep up with various options and coverage. For many businesses, the solution is a Business Owner's Package Policy.
What Is a Business Owner’s Package Policy?
A standard business owner's package (BOP) includes both properly and liability coverage as well as special riders or add-ons unique to your business. You can lower costs when purchasing these plans together.
Who Might Qualify for a Business Owner’s Package Policy
Businesses with fewer than 100 employees and less than $1 Million in gross revenue can often save significant money by purchasing a business owner's package policy. Check with your local insurance agent or trade association for restrictions specific to your location.
What it Covers
Think of property coverage as homeowners insurance for businesses. Property coverage includes protection from loss of inventory and damage to or loss of equipment. Consider what a fire or severe storm could cost a small business if the damage resulted in a total or even partial loss. Property coverage can keep you in business when you would otherwise close your doors.
In addition to property coverage, a Business Owner's Package often allows a business to purchase additional benefits as well, such as business interruption protection and policies to protect against dishonest employees. In each case, these policies would allow you to recover at least some of your losses. Expensive equipment and special needs can also be covered through the purchase of add-ons and special insurance riders.
Liability coverage is another vital consideration for business owners. If someone became injured at your place of business or in the course of your business operations, or damage occurred (to a car on your business property, for example), your losses and liability could be minimized through your liability coverage.
Another type of liability to consider is that of product failure and potential lawsuits. Your industry and unique risks can be covered through add-ons and additional riders as well. There are thresholds to your liability coverage ranging from $1 million to $2 million dollars depending on the plan. Conversely, operating a business without liability coverage can cost you the business and its assets.
Other Considerations
Professional liability coverage is not generally offered through a Business Owner's Package and is not required by most small businesses. If your profession and business require professional liability insurance, you will need to purchase a separate policy. Check with your insurance agent or professional association for information.
It makes good sense to save money and time. Combining your property and liability insurance coverage into a business owner's package can make good sense for businesses looking to do both.