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What You Need to Know About Business Owner's Insurance
In 2018, there were an estimated 870,301 small businesses in Michigan, equaling more than 99% of all businesses statewide. Small businesses employ about 49% of the Great Lakes State’s workforce, and firms with less than 100 employees comprised the highest share of the small business workforce. See how a BOP policy can help protect your business.
What’s a business owners policy?
When starting a business, you probably already have clear goals in mind. Your company needs to grow and succeed, but you have to take care of your physical assets, clients and employees to help it do so. That’s why every business needs various types of commercial insurance. The appropriate policies can be key sources of support to companies of all shapes and sizes should difficult problems arise.
Qualifying small businesses can get multiple policies in one package if they choose to invest in a BOP. By going this route, you’ll be able to get covered without hassle, and can easily turn to your policy if various accidents occur in your line of work.
What does a BOP cover?
A BOP might be an excellent insurance solutions for your small business because it allows you to get several critical policies within one place. Most offer:
- Property & Contents Insurance: This coverage will pay for damage to the business property and contents held within the business. For example, if a fire occurs and guts the business, this policy can help you repair the structure and replace equipment, furnishings and stock.
- General Liability Insurance: In case you accidentally cause harm to a third party, like one of your customers, then commercial general liability coverage can help you pay for that person’s losses. Most policies can include property damage, bodily injury, personal injury, products/completed operations, accidental medical payments, and legal assistance coverage.
- Business Interruption Insurance: Following a damaging accident, you might have to temporarily close. You might not only lose income during this time, but you might also face ongoing costs, such as salaries or mortgage payments. This coverage can help you cover such costs.
You can often add extra types of coverage to your BOP, as well. Cyber liability insurance, EPLI coverage, professional liability (E&O) coverage or D&O coverage might all be coverage you need. Let your agent help you decide the right way to obtain this additional coverage.
What’s the advantage of a business owners policy?
The good thing about BOPs is that they provide many types of security without causing you to face face a lot of hassle getting covered or making a claim. The different parts of your policy can work together cohesively to ensure you get comprehensive protection, but you can also adjust different limits to enhance coverage for your own operational needs. Therefore, it’s usually a lot easier to manage claims.
Who needs a BOP?
Because BOPs are geared towards small businesses, factors like your size, income and industry might disqualify you from eligibility. You do have other options available, however. Commercial Package Policies, also called CPPs, are essentially a larger version of a BOP that you can better adjust to meet your operational needs.
What’s the cost of a BOP?
The cost of your BOP is based on the specific characteristics of your business and chosen coverage, though the nationwide average cost is about $1,000/year. Your friendly, highly-trained agent is happy to help you develop a policy that offers a favorable premium with discount incentives attached.
What do BOPs not cover?
Always remember that BOPs don’t include all the coverage you might need. You usually need separate policies, including:
- Workers’ compensation insurance: Coverage repays your employees in case they get sick or injured on the job. Most Michigan businesses must have this coverage.
- Commercial auto insurance: With this coverage, you can insure company-owned vehicles or personal vehicles that employees use to drive on business.
- Inland marine insurance: Coverage insures certain company materials and cargo when you transport them off your business’s premises.
Superior Policy Services When You Need Them
Here at First Independent—Descamps Insurance we know that you want to get the right BOP, but we also know that the perfect coverage might not seem obvious. Let us be your guides in getting covered. We can help any Michigan business owner find coverage that offers adequate coverage at all times.
Call us at (888) 513-8784 or request your online quote today! We’re ready to help you protect your business in the best possible ways.