Every business must take time to consider just which insurance products will best serve their needs. Some forms of insurance are required, while some policies also can simply save your business from legal claims. Not insuring for a serious exposure, as a means of reducing costs, could spell disaster. A company can always save money by investing in a business owner policy, or BOP.


There are some wonderful advantages of purchasing a BOP. This type of policy is designed for business owners who desire to bundle effective, necessary insurance policies, rather than purchasing separate property and liability coverages. Insurance carriers offer a BOP as a way of getting vital coverage, and it’s intended mostly for eligible small and medium-sized businesses.


It’s a comprehensive package that can provide savings while offering flexible, customized coverage to fit the special needs of many different businesses. Some owners will choose to tailor a business owner policy by adding optional coverages, such as business income for off-premises utility services or other specialized coverages.


Determining which policies to include


A commercial general liability (CGL) insurance policy should be the cornerstone of any BOP as it protects a business from paying defense costs or any ensuing damages levied against an owner. If, as an example, an employee, customer, or anyone else sues for any business-related claims, your CGL goes to work for you. This policy helps to protect and maintain your financial health.


Another necessary component is property insurance for the protection of business equipment, furniture, appliances and any physical assets that the business may own. Compared to purchasing separate policies for business property and business liability, a BOP offers businesses a way to save money while getting broader coverage for things like fire, theft, lawsuits and loss of income.


A BOP is a smart and convenient choice because of the fact that various important coverages can be added to it. You’re given the flexibility to create a bundled package to suit the particular needs of your company. When considering a business owners package, talk to an agent about whether the business owner policy you choose to purchase meets your essential business needs.