Is a Basic BOP Policy Enough for Your New Company?

When selecting business insurance, you may be able to invest in a business owners policy or BOP. This type of coverage is a plan that includes individual policies to meet most of your needs.

Most of the time, a BOP plan can be quite inclusive. It covers most of the types of insurance your company needs to remain protected. It generally protects you from most risks.

As a business owner, you should closely review BOP coverage with an agent to determine if it is enough.

What Is Missing from Your BOP? 
Business owner policy coverage tends to be thorough. It includes coverage for assets, liabilities, and company-specific risks. However, it is important to look at the details of the policy. Business policies are thorough, but they are often not comprehensive for specific limits.

• Look at the limits on existing plans. Are these high enough to reduce all of your risks? Often, professional liability or additional liability coverage can help round out your coverage.
• Are there limitations or exclusions on the policy? You may need an additional plan to cover what the BOP excludes.
• Do you need a different type of plan? For example, commercial fleet insurance is often not available through a BOP. You may wish to obtain additional protection.
• What local threats exist? If your existing plan does not pay for hurricanes, floods, or tornado damage, buy an extra plan. This will help cover these threats.

Remember, you can customize a business owner policy to meet your company’s needs. However, many startup businesses often select a basic plan and think this is good enough. That’s rarely the case.

The most common areas to consider adding more coverage for a new company include:

• Adding professional liability insurance to protect your business. This helps if you provide a professional service, like being a practicing doctor, consultant, or dentist.
• Ensure all your assets have ample protection. Compare the limits of the policy to the value of your property.
• Be sure you have property insurance that covers rebuilding your plan.
• Add workers’ compensation coverage if not otherwise included.
• Be sure your plan offers business interruption coverage.

BOP is a good place to start. It is often the easiest and least expensive way of getting business insurance in place for a new company. However, you may need to adjust this policy to provide more of what you need from time to time.

Bargain Insurance Connection is here to help you get the right balance of business insurance coverage. You can start an online quote today to learn more. If you have additional questions, call us at 816-453-7722 today.