At Jarosch Insurance we speak with a lot of local business people. The most experienced and successful business owners know that insurance offers them one of the most powerful tools that small businesses can use to manage risks. On the other hand, newer business owners often think that covering their business has to be complex and expensive. If that describes you, you should learn about a business owner’s policy and how it can provide simple, critical coverage at an affordable price.
Understanding Business Owners Policies
You may hear a business owner’s policy referred to as a BOP. Business owners may decide to buy a BOP because it gives them a package deal on common kinds of important coverage. Insurers usually offer discounts for companies that bundle various kinds of coverage this way, so a BOP can be more affordable than purchasing every policy on its own. It’s also typically simpler to manage coverage within this kind of package.
Of course, policies might vary; however, a BOP generally has at least three kinds of business insurance:
- Property insurance: The BOP will cover the company’s owned buildings and the contents of these buildings.
- Liability insurance: This is general liability insurance to protect against injury or property damage claims against the company.
- Business interruption: Business interruption insurance can help replace lost income in the event of covered claims.
Some insurance companies offer a variety of options that allow their customers to tailor their coverage to their own needs. Examples of these options could include insurance against loss of electronic data or even mold. For example, local beauty salons may choose very different options than machine shops.
On the other hand, many businesses will also need other kinds of insurance that they can’t find contained in a BOP. These are some common examples of the types of things that a BOP probably won’t include:
- Even though a BOP provides property insurance, it usually excludes floods and vehicles.
- A BOP may offer general liability insurance, but it won’t also contain professional liability insurance.
Which Business Insurance Should You Purchase?
How do you know what kind of business insurance you should purchase for your company? According to the Small Business Administration, small businesses should spend some time assessing their risks before they begin to shop for coverage. Experienced insurance agents and the companies that they work with can offer businesses a good resource to help with this important risk assessment. This might seem like an extra chore, but in the end, it will help you buy the insurance that you need and pass on the kind of coverage that’s unlikely to impact your business.
Here at Jarosch Insurance, we have experience with all sorts of businesses. We also work with several top business insurers. We can help you through each step of covering your business. This might begin with a risk assessment and selecting the best combination of coverage. You will really appreciate our service if you ever do have to place a claim. Begin managing risks the right way by calling us at 480-839-8488 or by requesting an online quote. We make properly insuring your business affordable and simple.
