Business Owners Policy

Frequently Asked Questions (FAQ)

• How do I know I have the right coverage for my business?

  Embroker has published a bunch of great resources to help you on your insurance buying journey. Check out the Embroker Resource Hub for articles on coverage, guidance on insurance costs, and what you’ll need to get a quote.

  You can also connect with a broker at any time to get help identifying your coverage gaps.

• Are there additional coverages available with BOP insurance?

  There are policies that most small businesses need that simply cannot be attached to a BOP in any way. Workers compensation insurance and commercial auto insurance are good examples of popular coverage options that usually need to be purchased alongside a BOP.

  However, BOPs are still fairly customizable, meaning that there are plenty of endorsements that can be attached to your BOP in order to provide you with more comprehensive coverage, including policies such as professional liability, EPLI, and common commercial property endorsements such as spoiled merchandise and mechanical breakdown coverage.

  Naturally, the more endorsements you add to your BOP and the broader the scope of your coverage becomes, the more expensive your BOP will be.

• Who benefits most from BOP insurance?

  A Business Owners Policy is a policy package that was created with small businesses in mind. It was designed to cover many of the business risks that a majority of small businesses share, regardless of industry.

  Large companies with more complex insurance needs usually don’t qualify for a BOP, meaning that the coverage they need can’t be provided by a Business Owners Policy. These large businesses would most likely be better off purchasing a variety of individual insurance policies that are all tailored to cover their specific needs based on their more complex risk profile.

  If you fit into the following profile, a Business Owners Policy could probably be the right solution for covering your basic business insurance needs:

  • You have less than 100 employees
  • You make less than $10 million in annual sales
  • You have a physical location (could be your home) where most of your business is conducted

  If these statements describe your business, you can get a risk-free, instant business owners policy quote with Embroker in just a few minutes.

• Why do you need BOP insurance?

  A common misconception is that big companies need insurance more than small businesses. That simply isn’t true. While large companies might have more complex risks, one unforeseen event or misstep can be financially crippling to a small business if it is not insured.

  A large business will probably have the money to pay for a lawsuit without insurance or repair their office if a hurricane destroys it. But with less cash flow, a small business most likely wouldn’t have the funds to cover the additional costs from such events. Insurance is there to provide financial support and relief for such unexpected circumstances.

  Business Owners Policy Insurance can offer business owners peace of mind. This policy package makes it easy for business owners to maintain all of the most common insurance policies they need without having to manage several policies or sign contracts with different insurers. When you buy a BOP you have one policy that you’ve purchased from one insurer, making any eventual claims much simpler to handle.

  The Advantages of Having a BOP

  The most obvious advantage of having a BOP is that it casts a wide net of protection and provides you with a broad range of coverage while having to only purchase one bundled policy.

  The other most obvious benefit is the fact that you end up saving money. Every cent counts when you’re running a small business, which is why BOPs are an attractive option for smaller companies that need basic insurance coverage and would like to spend as little as possible on it.

  Another great thing about a BOP is that it can be modified and customized to fit your business’s specific needs. You buy what you need and you don’t buy what you don’t need. It’s very easy to add various endorsements to your BOP that will cover common risks such as equipment breakdown or personal and advertising injury.

  Finally, another key advantage of a BOP is that it’s an incredibly popular insurance option that is offered by all the top insurers and even smaller insurance carriers, meaning that you can really shop around to find the best BOP for your business in terms of coverage and cost.

• What does BOP insurance cost?

  There are several general factors that will determine the cost of your BOP, including the following:

  • Size: Larger companies with more employees typically pay higher premiums.
  • Industry and risk: The greater the workplace-related risks associated with your industry, the more you’ll pay. That means that a restaurant will almost always pay more for a BOP than a software company, for example.
  • Location: If your business is located in a region that is known for flooding or earthquakes, then your BOP will be more expensive compared to what a business located in a lower-risk geographic location would have to pay.
  • Value or property: The greater the value of your property and the harder and more expensive it is to replace your business contents and equipment, the higher your BOP premium will be.
  • Claims history: Previous claims can increase your premium.
  • Policy limits and deductible: Higher coverage limits generally result in higher premiums, while a higher deductible can lower your premium.

  Just like every other business insurance policy or package of policies that your company can purchase, the price of a BOP depends greatly on a multitude of factors that are taken into consideration during the underwriting process. And naturally, the more optional coverages you add to your BOP, the more it will cost.

  However, the average price that small businesses with a lower risk profile can expect to pay for a BOP is about $1,000 per year. Some small companies can pay as little as $500 while others may pay up to $3,500 for a year of BOP coverage, depending on their risk profiles.

  Most insurers will set the minimum premium for a BOP purchased by a low-risk business at about $250-$500.