Operating a business takes a lot of hard work. You have to manage multiple variables that could potentially hurt your business while you try to maximize profits. Business owners’ policies (BOPs) can take some pressure off of you.

However, you have to decide if the coverage is a good fit for your needs.

Business owners’ policies are an efficient way to merge general liability and commercial property coverage. Buying these coverages together is generally more affordable than purchasing the policies separately.

  • Commercial Property Coverage

    Commercial property coverage protects your business by taking care of your equipment and other inventory if they are damaged or stolen. The policy helps cover any repairs that need to be made along with any other expenses if your business suffers damages. You can also lean on business interruption insurance during emergencies. This ensures that you will receive the necessary financial assistance to continue operating your business even if you have to move to another location or close your business temporarily until the repairs are made.

  • General Liability Coverage

    General liability covers your business if someone is injured on your property or suffers harm while using your products. General liability coverage also protects your business if you are accused of slander or defamation of character. The policy covers property damage costs and medical bills.

Possible Exclusions

Most BOPs do not cover professional liability disputes where your business is sued for negligence or malpractice. A BOP does not contain workers’ compensation insurance. Workers’ compensation is considered mandatory coverage in most states and is legally required to operate your business, even if you only have a few employees. If you use vehicles to conduct business, commercial auto insurance is not included in a BOP. You may be able to amend your BOP based on the needs of your business. Common add-on policies include cyber liability coverage and employment practices liability coverage.

Do You Need BOP for Your Business?

Before you purchase a BOP, think about the characteristics of your business and the types of risks your business may be exposed to. Each industry has unique requirements. If you don’t have a physical place of operation, property insurance may not be necessary. Generally, a BOP is an asset if you have a physical location for your business, inventory that may be stolen, or provide services that involve regular interactions with the public.

Other Things to Consider

Bundling allows you to save money and may also benefit your insurer. There are high fixed costs generally associated with issuing and servicing a traditional policy. However, you could also get stuck paying for coverage that doesn’t always benefit you. While searching for insurance coverage, pay attention to what your business needs, which will help you decide if a BOP fulfills those requirements.

Consult with Scautub Agency

Be aware that you can always adjust your insurance coverage as your business needs evolve. Business owner’s policies are an efficient way to protect your assets as your business moves to the next level. If you have any questions, the experts at Scautub Agency are here to assist you. Contact us today to learn more!