How to Choose the Right BOP for Your Small Business in Florida

Owning a small business entails significant financial risk, requiring robust risk management and loss control measures. A business owners policy (BOP) can be a crucial core of your commercial insurance portfolio, but fully understanding these products is essential when seeking appropriate coverage.

What Is a BOP?

BOPs are multifaceted insurance solutions that may allow your company to fulfill several coverage needs with a single investment. This can provide a convenient and cost-effective arrangement that may reduce your business’s overall expenses while limiting your points of contact when managing coverage. In most cases, BOPs can include the following:

• General liability insurance
• Commercial property insurance
• Business interruption insurance

How Can You Select the Right Policy?

Although BOPs are often composed of the same three types of insurance and generally serve a common purpose, policies may vary in their exact capabilities and limitations. You should be diligent and exhaustive in identifying your needs and exploring options to secure ideal coverage. Consider the following steps:

• Determine eligibility—BOPs are typically available for small- and medium-sized businesses, with carriers potentially limiting eligibility based on workforce size, annual revenue, industry and number of locations.
• Consider coverage needs—Assess your business thoroughly to determine how much coverage you may need. Identify potential liabilities, calculate rebuilding and replacement costs of essential assets and consider how much revenue you could lose from a business disruption.
• Explore endorsements—You may be able to fill coverage gaps and augment your BOP with various endorsements, such as coverage for equipment breakdowns and natural disasters.

Be sure to review your BOP regularly, as business growth and changes typically require a reassessment of coverage needs.

We’re Here to Help

Contact Cathy Boyd's 1st Class Insurance Services in Haines City, FL, today to learn more about BOPs and find an ideal policy.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.