WHY TO GET BUSINESS OWNERS POLICY INSURANCE
Every small company, whether it is online or a physical business, shop, workplace, or warehouse, would be in danger of financial loss in the event of being held accountable for personal injuries or property damage.
While not all businesses own the property in which they operate, all businesses do have private possessions, like furniture, design items, appliances, computers and supplies.
The benefit of a BOP policy in comparison to having multiple other policies separately is that the entire package includes and covers all important business owners policy coverages and all policies that are vital for a business to have covered.
Business Owners Policy Eligibility
Before accepting you for a business owners insurance policy, insurance companies measure the risk your business carries, and whether it is eligible for BOP insurance depending on its location (or multiple locations), the location size, business type, revenue and industry.
Applying for business owners policy insurance is easy through this page, but keep in mind that not every business is qualified. The criteria vary between insurance providers.
BOP insurance policies are normally sold to small-medium businesses in risk-free markets, since larger businesses normally carry more complex risk that demands customization.
Exemptions
BOP liability coverage varies; however, the conditions below are used by most mainstream insurance providers:
Size of the primary location. Business Owner's Policy covers businesses that are not in large structures, such as factories and distribution facilities.
Annual Revenue. Companies may only apply for business owners policy insurance if they do not exceed annual revenues of $5 million USD.
Number of employees. Businesses with under 50 employees may be able to get BOP insurance; if a company has more employees than that, they may not be able to qualify for it. The fewer workers a business has, the higher its chances are to qualify for BOP insurance coverage.
AVERAGE BUSINESS OWNERS POLICY (BOP) INSURANCE COST AND AFFECTING FACTORS
Once you get a business owners insurance quote, you might want to compare that to the average BOP insurance cost.
A business owners policy insurance cost may differ depending on the insured business risk management considerations and required coverage amounts and deductibles by the business itself.
In general, business owner insurance cost could vary from $500 to $3,500 U.S. Dollars per year; the average business owners policy cost is approximately $1,200.
Business owners policy cost varies due to the following factors:
Nature of Business
The kind of business you run and its industry affects its BOP insurance rates. A good example is damage to a business that has equipment, supplies and appliances that workers use is more significant and expensive to cover compared to simple IT or home based businesses of either freelancers or just office employees. The greater the risk involved with a business, the greater is its BOP insurance cost.
Claims History
If your business have had no claims in the past and have a good history, it will be easier for it to get cheap BOP insurance quotes.
Coverage Restrictions
The scope of the coverage you choose for your business significantly impacts your Business Owner's Policy cost. A simple office (or home office) with $3,000 maximum repair cost possible to any damage that may be caused to it is a significantly lower risk (and cost) to insurers compared to a commercial facility that requires over $1M to renovate or repair its property damage.
Additionally, your BOP insurance liability limits choices affects your BOP insurance cost. The typical liability limit for most BOP insurance policies is $1M; however, if you believe your business requires more than that, your insurer will allow that, but it will affect the rates you pay for your BOP.
Carriers
There are plenty of firms in the insurance industry, and the majority of them have their business owner policy. The costs and scope of each of these factors are substantially unique. Even though most of them are subject to normal GL, CP, and BI, they may also excel in their field. You can have lower deals compared to the one that doesn't provide that expertise; only if they are experienced in your form of market.
Size
Business Owner's Policy premium rates are determined based on business size as well. Your number of employees will affect some coverage sections of the business owners policy. Also, the more employees a business have, the more it is exposed to risk and potential lawsuits as well.
Deductibles
A deductible is the total a business pays out of its own pocket before the insurance policy kicks in to cover loss. The higher your deductibles are, the cheaper your business owners policy insurance quotes will be. Insurance companies will lower your BOP insurance premium rates as you share more of their risk and carry a more significant proportion of your setback. Always remember that you will be required to actually pay this price before you are able to file a claim and activate your BOP insurance policy for the insurance carrier to reimburse the rest of your business financial loss.
