Large companies have business insurance liability and property insurance with very high limits and willingly pay their premiums in order to protect their investors, owners and workers from risks. Small- and medium-sized businesses can have similar coverage, but save on premiums by buying a business owner’s policy (BOP).
A business owner’s policy is pre-packaged insurance designed for many kinds of small- and medium-sized businesses including small shops, small repair centers, medium-sized manufacturers and freelance workers such as web designers, IT consultants, ride sharing drivers, writers, accountants and many more professions and industries.
It is common for big tech firms who hire freelance programmers to spell out for them what type of insurance they need (as well as coverage limits) before the company hires them.
How Does BOP Insurance Work?
The typical BOP insurance policy offers many types of coverage that if bought separately would be more costly than consolidating into a BOP.
- Business Interruption Insurance: If your business stops operating or reduces production for a while, business interruption insurance provides cash to offset profits you lose, or to pay continuing expenses. Usually, this type of insurance provides coverage for up to one year for covered events.
- Crime Insurance: Protects the business from criminal activities resulting in loss of money from robberies, burglaries and losses related to employee embezzlement or employee theft.
- Vehicle Coverage: This coverage is not commercial auto business insurance, but it covers vehicles that your company rents or borrows.
- Property Damage: Most business owner’s policies offer replacement cost of damaged property. This means that you get full market value for the cost of the replacement, and not depreciated cost based on years of service.
- General Liability Coverage: This is protection that insures you against claims of other people for property damage or personal injury occurring on the premises of your business. In addition, the liability part covers your defense costs for lawsuits relating to property damage or personal injury claims.
When you talk with your experienced insurance agent, he or she will ask you detailed questions about how your business runs. You might need inland marine coverage, or other special kinds of protection. By adding it to the basic coverages of a BOP, the incremental cost is less than buying the policy as a stand-alone.
Keep your business safe. Call Porter-Brandenburg Agency at (972) 234-5588 for more information on commercial insurance Dallas TX.