Second, most insurers offer steep discounts on their package policies. By getting multiple coverages together through a BOP, businesses can often save a lot on their insurance payments. Since most BOPs are designed for small and medium businesses, these savings are frequently especially helpful. After all, many small and medium businesses have tighter budgets and thinner margins.
What Coverages Do Business Owners Policies Offer?
As is the case with almost any form of insurance, the exact coverages that a business owners policy offers can vary. In general, however, BOPs have three main protections:
- General Liability Insurance, which normally provides broad coverage against common liability claims
- Commercial Property Insurance, which might cover property a business owns from fire, theft, and similar perils
- Business Interruption Insurance, which may offer financial assistance if a covered disaster forces a business to shut down temporarily
An increasing number of BOPs also offer cyber liability insurance, which is often used to protect against online threats and data breaches. This coverage isn’t included in all BOPs, though.
Are Other Coverages Included in Business Owners Policies?
A few business owners policies might include other coverages, but these BOPs are the exception rather than the rule. In general, BOPs don’t offer many other protections. They’re intended to offer protection from some of the most common risks that businesses face. Therefore, BOPs usually have only basic coverages that are widely needed.
Additional coverages that businesses need may be purchased as stand-alone policies or through a commercial package policy. Which option makes the most sense for a business that needs additional protection depends on how many other coverages the business needs.
Are Businesses That Purchase a BOP Still Able to Get a Liability Certificate?
Some businesses need liability certificates in order to prove that they have sufficient liability coverage. Without a certificate, these businesses might struggle to land any contracts with clients.
As long as a BOP includes liability coverage (which the vast majority do), a business can usually get a liability certificate. The certificate will clearly state how much liability coverage the business has. An insurance agent can help any business that needs a certificate request one.
How Can Businesses Get a Business Owners Policy?
For help finding a business owners policy, businesses should contact an independent insurance agent who’s licensed in their state and specializes in commercial insurance. Such an agent will be able to help make sure a BOP provides the insurance coverages that a business needs, and the agent can request quotes for BOPs from different insurers. With an agent's assistance, it's easy to find a policy that's affordable and provides the right protections for a business.