What is a business owner’s policy (BOP)?
A business owner’s policy (BOP) is a commercial insurance product that combines frequently purchased individual policies into one blanket policy, making it a convenient and cost-effective alternative to buying separate coverage plans. Companies investing in BOPs typically have 100 employees or less and sales of $ 5 million or less, according to the Insurance Information Institute.
Who is eligible for a business owner’s policy?
Any business is eligible for a BOP, but some may have higher coverage needs than the typical BOP offerings. BOPs are generally for smaller, less risky businesses that do not require specific custom insurance policies.
What is the difference between a BOP and a package policy?
A BOP is prepackaged, while a package policy is tailor-made according to the needs of a particular business. Because BOPs do not include blanket policies, many businesses require employee compensation, cyber liability, and error and absenteeism insurance. Some companies may choose to add these additional policies to create a custom business insurance package.
What does a BOP usually exclude?
While a BOP covers multiple risks, there are general exclusions. Businesses often need to supplement business owner policies with other insurance options, including specific professional liability, employee compensation, and commercial flood policies. Businesses where employees drive vehicles as part of the business may also require additional coverage for business vehicles. Tech companies and other companies with customer databases may need to invest in additional protection against cyber attacks.
How much does a BOP cost?
The median price for some lower-end BOP plans is around $ 42 to $ 45 a month, such as TechInsurance, while at the top end, the median cost, such as those offered by Progressive, is around $ 62 a month for some plans. These plans typically include a combination of general liability and business equipment or property insurance.
How we chose the best insurance companies for business owners
As you are considering insurance coverage options for your business, you want to make sure that you choose not only a company that can be trusted, but also one that will provide you with the specific coverage you need. We’ve taken the time to review and evaluate more than a dozen companies, weighing in on key factors such as the company’s overall history and ratings, the types of insurance they have available, details of the plans, prices, what’s involved in the underwriting process, and if discounts are available, all of which are important to customers looking to purchase a business owner’s policy.
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