What is a business owners policy?

Small businesses commonly have certain common insurance needs. For these, Vermont businesses normally can use a business owners policy.

A business owners policy (BOP) is designed to meet small businesses’ insurance needs. This is a package policy that most small businesses should consider, as it’s likely suited for the risks they face.

Which small businesses in Vermont is BOP insurance well-suited for?

BOP insurance is generally well-suited for small businesses that have fairly basic insurance needs. Most Vermont small businesses should start their insurance comparison with this kind of policy. 

An insurance agent who specializes in business insurance will be able to help businesses determine whether this indeed is the right package policy for them.

Is BOP insurance necessary for home businesses?

Regardless of a business’s location, having certain types of insurance coverage is generally recommended. This applies to home businesses as well as ones that have facilities outside of a business owner’s house.

Even though home businesses are smaller and usually have limited insurance risk exposures, they’re still exposed to at least certain basic risks. These tend to be the types of risks that BOP insurance is well-suited for.

What kinds of protection can BOP policies offer to small businesses?

While the specifics can vary, most business owners policies offer three primary types of coverage. These include:

• General Liability Coverage: Usually covers common accidents causing third-party injury or property damage.
• Commercial Property Coverage: Usually covers rebuilding costs in case the business’s facilities or assets are damaged or lost.
• Business Interruption Coverage: Usually covers lost revenue if a disaster prevents a business from operating.

Some policies also provide additional protections like cyber liability coverage or commercial auto coverage. Cyber liability is something almost every business can benefit from today., but it’s particularly important for online businesses. Almost every business that has a company vehicle is required to carry some form of auto insurance.

Do small businesses need auto coverage when using a personal vehicle for work?

Most small businesses do need some type of commercial auto coverage even if only using the business owner’s personal vehicle. 

Sufficient coverage might be available through an endorsement that can be added onto the business owner’s personal coverage, but is also frequently available via a BOP. It may be easier and more cost-effective to get coverage through a BOP when purchasing other protections too.

How much are the premiums for BOPs?

The cost of premiums for a BOP can depend on a variety of factors, such as the business’s location, size, industry, operations and history of insurance claims. 

Nevertheless, business owners policies are typically designed to be affordable for even small businesses. Premiums for these policies can be quite low on an annual basis.

 Business owners can obtain quotes from different insurers with the assistance of an independent insurance agent. Getting quotes from an independent agent, who can check policy options from multiple insurers, is the easiest way to determine coverage cost.

Are business owners policies and commercial package policies the same thing?

Business owners policies and commercial package policies are not the same. Both types of policies bundle multiple coverages, but BOPs are generally designed for small businesses with standard insurance needs. Commercial package policies usually offer a broader range of coverage options, and more customization options.