Business owners rely on their insurance policies to protect them during difficult moments. Commercial insurance is unique because you can find a custom policy that aligns with your business’s needs. You’ve likely compared multiple packages alongside your agent. One of the options you may be familiar with is a Business Owners Policy. A BOP is an attractive option for many business owners because it combines general liability and property coverage under one policy.
Be aware, though, that a Business Owners Policy may not be your best option. Your business has to meet specific qualifications in order to qualify for a Business Owners Policy. The Small Business Association classifies businesses based on their income, size, and industry risk.
Here’s a closer look at why a Business Owners Policy may not be ideal for your business.
Insurance companies assess your income level to determine which level of stature your business should be classified at. Income levels vary based on the industry that your business is involved in. Your business could be classified as small if your yearly revenue is less than $2 million. It’s recommended that you speak with your insurance agent.
Business Owners Policies are designed to assist small businesses. Small businesses are classified based on multiple variables, including the industry your business is involved in and the amount of coverage you need. Your insurance agent may also classify your business based on the number of employees you have.
Identifying the level of industry risk is a major part of determining whether your business qualifies for a BOP. BOPs are ideal for small businesses that are involved in low-risk industries. Low-risk industries such as retail, bookstores, and mentoring have much lower claims rates compared to the medical, legal, and finance industries.
Things to Consider
While Business Owners Policies are ideal for small businesses in low-risk industries that earn fairly modest revenue, you still have options even if your business doesn’t qualify. A commercial package policy is an alternative version of a Business Owners Policy that is recommended for large businesses or businesses involved in high-risk industries. Commercial package policies include general liability insurance, property insurance, and other unique policies based on the needs of your business.
Commercial Auto Insurance
Commercial auto insurance protects your business if you use any vehicles to complete business-related tasks. The policy covers any vehicles owned by the business and any personal vehicles used for work-related endeavors. The policy covers you if the vehicles are damaged or stolen while you’re working. Commercial auto insurance also includes liability coverage that protects you if your vehicles accidentally cause property damage or injure someone while you’re working on the job.
Emergency Income Insurance
Emergency income insurance protects your business if your place of operation is severely damaged by a fire or tornado, causing your business to shut down. Income insurance compensates your business for projected loss of revenue while the repairs are being made. This ensures that you will continue to meet all of the necessary expenses concerning your business, such as utility bills and paying your employees.
Consult With Pittman Insurance Group, LLC
Business Owners Policies are designed to provide full coverage to business owners at an affordable rate. If you are inquiring about a BOP, contact our team here at Pittman Insurance Group, LLC. We will answer your questions and make sure that your business is protected in any situation.