BOP Insurance – The Basics Every Business Owner Needs to Know

A business owners policy, or BOP, can seem like a complex topic to many business owners. However, it’s actually very simple and straightforward, providing coverage that many business owners need in order to protect their businesses from major accidents and other events that could leave them unable to run their business if they were to occur. Read on to learn more about what BOP insurance covers and how you can get the best BOP insurance policy possible for your business and your needs.

What it is and What is Covers

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Business owners need more than just a good business plan.

Insurance protects you from what life throws at you. Some call it peace of mind, but really it’s your safety net in case something goes wrong. Regardless of your business type, managing the risk of a possible disaster is vital to surviving and thriving. But how do you know what insurance you need? If you’re starting a new business (a solo practice, partnership or corporation), you’ll need a business owners policy from day one-no exceptions.

Are There Different Kinds

Business owners need more than just a good business plan. After all, without good financing or working capital it’s going to be hard to get anywhere. Fortunately, there are many insurance policies designed specifically for the needs of a small business owner. Typically, the type of insurance you’ll want for your business will depend on what kind of business you own. Basic business owners policies are often recommended for sole proprietors and small businesses, but other options include personal liability coverage or special commercial general liability insurance. Once you know what type of BOP you’re going to need, it’s time to figure out how much coverage is enough and what sort of deductible amount should be included in your policy.

As the owner of a small business, you understand that accidents and other unforeseen circumstances are just around the corner. That’s why it’s so important for you to make sure that your business is well protected by taking out a BOP insurance policy. In addition to protecting your hard work, having this insurance can also help grow your company and ensure that you don’t have to close up shop because of some disaster or accident. Prince Insurance can help you in whatever industry you are in to get all the business coverage that your need!

Why Insurance for Subcontractors Is Essential

Man sliding a piece of wood across a table saw.

Let’s say you’re a construction subcontractor trying to convince a contractor to give you work. You have all the necessary skills and materials, but you’re missing one crucial thing – insurance.

Why does not having insurance affect your ability as a subcontractor to get work on a construction site? To give you a tip, it has something to do with accountability.

Continue reading to learn more about why not having insurance is often the single biggest reason why subcontractors don’t get work.

Risk of Injury

Not having insurance – a seemingly small detail that doesn’t affect your ability to do your job – automatically makes your contractor more accountable. This is because, without insurance, employers become more at risk of having to pay you for any injuries, should they occur.

Construction subcontracting tends to come with more risk of injury, and therefore the need for insurance is higher.

With an insurance policy in place, however, that responsibility becomes your insurance company’s–not your employers. Therefore, employers are much more willing to hire you because they know they won’t have to pay you in the event of an injury.

Best Policies for Subcontractors

Now that you know the importance of insurance for subcontractors, the next step is to choose the right coverage for your needs.

For construction subcontractors, a good place to start is a comprehensive construction insurance policy. With this type of policy, you can expect coverage for:

  • General Liability: A broad type of policy that provides your company with liability insurance for general business risks.
  • Commercial Auto: Covers physical damage and liability coverages for vehicles used by your business.
  • Workers’ Compensation: Offers coverage if an employee suffers injury or illness while on the clock or within the scope of their job duties.

However, as a subcontractor, or someone who owns their own business, you’re also going to probably need one or all of the following additional coverages:

Armed with these types of policies, you’re sure to increase the likelihood of getting hired for construction-related projects as a subcontractor.

Finding an Insurance Agent

The final step to securing the insurance you need as a subcontractor is to find the right insurance agent, looking at such factors as experience, customer reviews, and the ability to provide insurance for subcontractors in the first place.

To start off in the right direction, check out Prince Insurance Group. We offer one of the most diverse insurance menus on the market, with plenty of options specifically designed to work for subcontractors (including the types of policies listed in the section above).

Check out your options by getting in contact with Prince Insurance Group today!

What Is BOP and How Does It Work?

Business owner’s policy (BOP) refers to a suite of insurance coverage. It’s a smart way for business owners to ensure that every aspect of their liability is covered. By grouping their coverage into a single package, they can often access a better price, too. BOP is not available to all businesses, however. You may need to speak with an agent to understand if your business can qualify. It will depend on the business’s needs, operations, and risks. But you should definitely inquire about a business owner’s policy (BOP) because it could bring you huge benefits.

Business owners should bundle their insurance to get the lowest premium for the most coverage.

BOP popular plans

Some of the most popular plans for BOP include premises liability, business income insurance, crime insurance, and coverage for inventory loss. You need to be protected in case an unforeseen event occurs that disrupts your business for weeks or even months. For instance, a crime onsite could make it impossible for you to do business. A flood could destroy your inventory and interrupt hundreds of customer orders. Your BOP could cover these types of situations, lending protection to you and your business against disasters.

Selecting the best policies & finding an agent

You should only get the coverage that you need, of course. Work with a great agent that can help you select the policies that make sense for your business. If you don’t work near water, then you shouldn’t be sold any marine insurance. But your agent should remind you that anyone can fall victim to a fire or onsite medical disaster. Remember, insurance is there to cover you when the unexpected happens. You do need to exercise some judgement when it comes to selecting policies for your business. Make sure that you select coverages and amounts that will actually protect you for any possible event. There’s no sense in having a policy that doesn’t cover the full amount of damage.

To speak with an agent about your options, contact our office. Our friendly team of professionals can help you understand what’s available, so you make the best choice for your business.