Resources

Business Owner Policy or BOP is a type of business insurance. It is a basic policy providing the most common types of coverage most businesses need. Purchasing a BOP plan makes sense for many companies because combining these commonly needed policies can significantly reduce costs. However, Business Owners Policy plans do not always cover all areas of need. Most policies cover property insurance, liability insurance and business interruption insurance. 

What to Add to Your BOP Plan 

Making changes to your existing business insurance or adding to it is always good practice for companies who may be facing additional risks. The following are four types of commonly added coverage to BOP plans.

#1: Professional Liability Insurance 

This is a higher level of liability insurance than a BOP plan offers. With the high cost of litigation, smaller businesses have a growing need for more extensive protection. If you are a medical or dental provider or other professional, you may need this coverage to protect against higher lawsuit risks. 

#2: Employee Practice Insurance 

Protection from employee claims against your company is also a growing need for smaller companies. Harassment claims or discrimination claims, for example, can be very costly to most businesses today. This policy can minimize those risks. 

#3: Business Vehicle Insurance 

If your business operates a vehicle for any component of the company’s operation, you need to have business vehicle insurance in place. Commercial auto insurance applies to everything from fleets of trucks and vans to the vehicle you use for meetings and appointments if it is a business-only vehicle. 

#4: Workers Compensation 

Most BOP plans do not include workers compensation, but it is available as an additional component to your company’s plan. If you have employees, you may be required to maintain this coverage. It aids in covering medical and other losses in situations where an employee is hurt on the job. 

Having the right business insurance can give you peace of mind. It can also provide you with the reassurance that your company is covered in situations where you could not prevent or even manage the financial implications. Modify your BOP plan to include these and other coverage applicable to your business. 

You might think that home and condo insurance are similar, but there are many differences. Most condos don’t have backyards or basements. You own everything within your condo, and ownership of the rest of the complex is usually shared between all condo owners. To make things even more confusing, insurance rules are different between different condominium complexes. Take a few minutes to learn more about condominium master policies so that you can understand how they work, and what kind of insurance you will need to purchase. 

What is a Master Policy? 

The master policy is an insurance policy that the group of condo owners (also known as a condo association) pays for. It covers everything that falls under shared ownership, such as a pool, common areas, exterior structures and more. Depending on what type of master policy your condo association has, it may also cover certain items within your condo as well. There are two basic types of condo master policies: bare walls-in and all-in. You will need to purchase different insurance for your condo based on what kind of master policy your association has. 

Bare Walls-In Condo Insurance 

If your condo association has this type of policy, that means that everything outside your walls, including the exterior framework of your condo, should be covered on the master policy. You will need to purchase insurance for everything within the walls of your condo. That includes carpets, appliances, fixtures and your personal belongings. 

All-In Condo Insurance 

All-in master policies work a little bit differently than bare walls-in policies. If your condo association has an all-in policy, then things like flooring materials, bathroom fixtures, kitchen counters, cabinetry and other fixtures inside your condo should be covered by the master policy. You will need to check the condo association’s master policy for specific details, but in general, you may only need to insure your furniture and other possessions. 

Before you talk to your independent agent, make sure you have a copy of your condo association’s master policy. This document should outline everything that is covered by the master policy so that you know what kind of condo insurance you will need to purchase.  

A Business Owner Policy, or BOP, provides financial coverage for many businesses. This is a simple, streamlined form of business insurance. It usually gives companies the ability to keep costs low. However, it often provides for most needs.  

Before renewing this policy, take a closer look at it. It may be time to add to it. And, discounts may apply to reduce costs. 

#1: Do policy limits still match the company’s needs? 

Verify the current limit on the BOP. Ensure it is at least enough to cover the company’s current risks. If not, request to increase it. This will reduce risks. 

#2: Does the policy offer cyber and data breach insurance? 

Cyber insurance and data breach coverage is important. It is one of the more important coverage options for small to medium businesses today. It is growing in popularity due to increased risk. It often remains very inexpensive. However, it becomes essential coverage if a data breach occurs exposing your customers. 

#3: Does the policy offer business interruption coverage? 

This is also an important coverage to include. Not all business insurance includes it. The policy covers costs incurred as a result of having to move the business while repairs occur. This applies when an incident occurs that the policy covers. It can provide significant financial support to most companies. 

#4: Is umbrella insurance important now? 

As companies grow, risks grow. Every business will see liability risks grow. This is normal as the company’s revenue expands. It also occurs when the company gets more customers. Umbrella insurance helps expand liability coverage. It generally remains affordable. However, it provides financial support should a claim occur. Most companies need more than $1 or $2 million in liability insurance. This helps reach those goals. 

#5: What additional discounts does the company obtain? 

Renewing a BOP with the same company is an option. It is also an option to find a new provider. There is often no downside to switching.  

Ask your existing insurer for a lower rate. Discuss discounts rated to no claims or long-time service. If the company cannot offer a lower price, ask why not. Then, compare rates with other companies as necessary. There is no benefit to overpaying for coverage. 

A BOP may not always be enough. Many companies need expanded insurance. A more comprehensive plan may be ideal for your needs. Your business insurance agent can help determine if this is the case. He or she will make recommendations to you. Additionally, the agent can help adjust any claims, deductibles or terms. Review all of these factors each year. Whenever the policy is set to renew, pay close attention to the changes from one year to the next.