Recently we’ve been receiving many questions regarding Business Owner’s Policies (BOP). Are they right for my office? What exactly is a Business Owner’s Policy and what does it cover? How can I budget a BOP for my office?
Nancy Wuenne, our Property and Casualty Division Manager, is here to answer those questions to help clarify the in’s and out’s of a Business Owner’s Policy.
Question 1: “Is a BOP (Business Owner’s Policy) right for my business?”
Wuenne: “Factors such as the type of business and annual revenue affect eligibility. If your business is not eligible, our team at Professional Insurance Programs (PIP) can assist you with alternatives to help you protect what matters most.”
Question 2: “What is covered in a basic BOP? Are there other coverages I need?”
Wuenne: “A basic BOP provides coverage for threats common to most small businesses. Threats could be building coverage, business personal property, and general liability insurance. PIP offers additional endorsements unique to small businesses that we could discuss further in more detail for your office.”
Question 3: “What are some examples of items BOP covers?”
Wuenne: “First, it is important to know what your policy does not cover. BOP’s do not cover your employees for work-related accidents or illnesses. They also do not cover professional liability, auto insurance, worker’s compensation or health and disability insurance. Our team can help you create a plan to cover your professional services, vehicles and your employees specific to your industry.”
Question 4: “It seems like every day there are businesses getting attacked by hackers with customer information at risk. How can I protect my business and customers from this?”
Wuenne: “To help proactively minimize risk to your business, we have a solution for new threats to small businesses: Data Breach coverage. This is an endorsement of your BOP that can help combat new risks such as protecting your client and office data.”
Question 5: “How can I be sure my policy will change as my business needs change?”
Wuenne: “At PIP, we offer coverage options that are flexible enough to meet your evolving business needs. A great way to know you are always covered is by keeping PIP up to date on any changes to your business. Changes could be adding/eliminating a location, new equipment purchase, and/or changes in the type of service/products you offer. Normally, we only ask that you keep us updated on an annual basis. This will help ensure your business stays fully protected.”
Question 6: “I want to make sure my business is covered, but I still need a bottom line to keep my business in operation. What factors determine how much I pay for my BOP?”
Wuenne: “The square footage to coverage limits can affect your rate. Our mission is to help you protect what matters most. That’s why we can help you select an insurance program designed specific to your industry and office, all while sticking to the bottom line.”