At Great Lakes Insurance, we serve plenty of business owners in and around Duluth and Cloquet, MN. While many of our clients enjoy the simplicity of a business owner’s policy or BOP, others need to tailor coverage to more unique requirements. Do you understand the pros and cons of a BOP and how to select the right coverage for your unique company?
Pros and Cons of Business Owners Policies
Business insurers let many kinds of small businesses combine the most common types of protection within one package. Even better, they usually discount these packages. That usually makes a BOP a good choice for small business owners who want simple and affordable protection against typical threats. Commonly, these packages include general liability, commercial property, and business interruption insurance.
Even though BOPs are usually fairly standardized, they may offer you some ability to customize your policy for your own needs. You might also have the choice of such additional insurance options as coverage for electronic data. Note that commercial property might cover your business computers. Still, it typically won’t reimburse you for the cost of lost data. Of course, the fine details of each policy can vary considerably. Also, insurers may offer packages of protection that have been tailored for certain kinds of companies. For example, insurers may offer one BOP that has been tailored to plumbers and another tailored to beauty spas.
On the other hand, you may require more flexibility or more coverage than a typical BOP gives you. For instance, your BOP probably won’t allow you to include commercial vehicles or professional liability insurance. Also, insurers limit eligibility for a BOP to businesses of certain sizes or types. Your own company may take more risks or need more flexibility than the average businesses that a BOP was designed to protect. Even if you decide to buy a BOP, you’re also likely to need other kinds of coverage. Typical examples of the kinds of coverage a BOP may not offer include workers compensation and health insurance.
Can Your Business Benefit From a BOP?
No two businesses are exactly alike. Even though a BOP offers the right solution for many companies, it won’t be the best product for everybody. To find out if your business will benefit from a BOP or another kind of business insurance, you can consult with a business insurance agent. These professionals can help you begin by assessing typical risks and requirements for your unique kind of company. After that, they will help you explore various options from quality insurers to find the solution that offers you the right protection at the best price.
Here at Great Lakes Insurance, we’re business owners too. We understand the financial risks that one accident or bad storm can pose to a growing company. That’s why we want to take the time to learn about your business and propose the right package of business insurance. If you’re located in or near Duluth or Cloquet, MN., call us today. You’re also welcome to learn more about our commercial insurance services.