What Coverages Are Included in a BOP?
BOPs are generally written as package policies, which means they have several individual insurance policies within them. While these individuals policies can be adjusted (and vary) to an extent, most BOPs have three main policies:
Along with these policies, some BOPs also have commercial auto insurance, cyber liability insurance or other additional policies. Not all BOPs have other policies, though.
What Massachusetts Businesses Can Benefit from Getting a BOP?
Small- and medium-sized businesses in Massachusetts that have fairly simple operations may benefit from getting a BOP. For these businesses the above-listed coverages often provide plenty of protection.
Businesses that have more complex operations or are larger may need additional protections that a BOP isn’t intended to provide. These businesses are frequently better off with a commercial package policy.
How Are Business Owners Policies and Commercial Package Policies Different?
Business owners policies and commercial package policies are both package policies that provide coverages for businesses. They primarily differ in the coverages they provide.
Business owners policies mainly provide the coverages noted above, which are suitable for small and medium businesses that have fairly straightforward operations.
Commercial package policies can provide an array of different coverages. They frequently provide all of the coverages found in business owners policies along with many others. Moreover, the additional coverages can be broadly useful (e.g. product liability insurance) or highly specific (e.g. farming or ranching loss insurance).
Because commercial package policies are more robust and flexible than business owners policies, commercial package policies are better suited to meet the needs of businesses that have more varied or unusual insurance needs.
Are Business Owners Policies Expensive?
While exact premiums can vary, most business owners policies are affordable for even small businesses. Since these policies only contain essential insurance coverages, businesses can get the coverage they need without paying for extraneous protections. As an added benefit, many insurance companies in Massachusetts offer substantial discounts for purchasing multiple coverages through a package policy.
What Factors Affect Business Owners Policies’ Premiums?
When calculating premiums for business owners policies, insurers consider many factors. A few items that they may base rates on include:
- A business’ size, location and industry
- A business’ annual sales or customers served
- A business’ past claims history
- The exact coverages and limits a business selects
How Can Businesses Get a Business Owners Policy?
Businesses in Massachusetts can find out whether a business owners policy is right for them by contacting an independent commercial insurance agent in the state. An independent agent will be able to review a business’ situation and recommend an insurance solution. If a BOP is the right choice, an independent agent can help the business select one.
