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"What’s a BOP?" and Other Small Business Insurance Questions Answered

December 9, 2016 • 5 min read

Starting a small business presents many challenges, some you’re prepared to face, and others that catch you completely off guard.

So where do you start?

Explore small business insurance with CoverHound and take a look at these seven common questions.

Small Business Insurance FAQ

Q: I’m in the process of starting a small business. Do I need insurance?

A: In a word, YES. Small business insurance protects you, your employees, company vehicles, products and services from unforeseen events such as accidents, lawsuits, injuries to your employees, etc. It can protect your company from going out of business.

Q: What types of insurance packages are available?

A: There are four main types of small business insurance: liability, property, workers’ compensation and business vehicle insurance.

Q: What insurance package is most recommended for a new business?

A: When you’re first starting out, we recommend that you purchase a Business Owners Policy, also referred to as BOP. BOP insurance covers all of the necessities. After becoming more familiar with your business and its needs, you can invest in additional plans.

Q: What does a Business Owners Policy (BOP) include?

A: A BOP policy combines general liability and property coverages for small to medium sized businesses. Should this not be enough, small business owners can customize their BOP insurance to also include:

  • Data Breach Insurance
  • Medical Payments Insurance
  • Loss of Income Insurance
  • Employment Practices Liability Insurance
  • Equipment Breakdown Insurance
  • Non-owned and Hired Auto Insurance

Buying a BOP is generally cheaper than if you purchase separate insurance policies.

Q: What does BOP insurance offer in layman’s terms?

A: As we have learned, BOP insurance offers liability and property coverages, but what do these entail? Here’s a rundown:

Liability: Covers property damage and bodily injury sustained by a client/customer that occurs on your business’ premises or caused by your business’ operations or products.

Property: Covers the business’ equipment, merchandise, furniture and building structure.

Q: If I run my business out my house, can’t I just use my homeowners insurance?

A: The simple answer is no. While there is some coverage provided under your homeowners insurance policy, it’s not nearly enough to protect you and your business. Homeowners insurance does not cover your company’s data or your equipment and products. And if an employee is hurt on your property, your homeowners insurance agent will deny your claim, leaving you financially responsible.

Running a small business takes time, patience and understanding. Help curb your anxiety and stresses with a BOP insurance policy.

 

This post was originally published at by our friends at CoverHound on October 10, 2016. CoverHound offers instant, accurate rates with easy online access, backed by personalized service when you need it.


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