How a Business Owners Policy Benefits a Small Business

Posted on: February 26, 2018 by Signature Insurance Group

It’s no secret that small businesses have a big impact on the U.S. economy. According to the U.S. Small Business Administration Office of Advocacy  there are 28.8 million small businesses in the United States, which account for 99.7% of all businesses in the country. Each small business is unique, and their insurance needs can vary greatly. A one-size-fits-all commercial insurance policy isn’t really fitting in this case, while a business owners policy can fit in perfectly.

A business owners policy (BOP), sometimes called a business owners package, is just that –  insurance package that combines a variety of different policies to provide small businesses with comprehensive coverage that fits their individual needs. This convenient package typically includes: a basic commercial liability policy and a commercial property policy as well as other coverage options that are custom-tailored to fit the business’s needs.

BOP Benefits for Small Businesses

Because BOPs are extremely customizable, the included policies may vary depending on what a particular insurance agency offer. Here is a look at some of the typical coverage plans that can be found in a business owners policy, all of which are offered at Signature Insurance Group.

• Commercial General Liability (CGL): Protects a business against losses resulting from common litigation risks associated with running a business. Typically covers tort liability cases such as bodily injury or property damage on the business premises, bodily injury or property damage due to business operations, medical payments, libel, slander and copyright infringement.
• Commercial Property: Protects against losses resulting from accidental damage to the property, not including damage from floods or earthquakes. Typically covers the building structure and some interior items such as walls, ceilings, floorings and attached furnishings.
• Business Interruption (BI): Covers the actual loss of business income resulting from the necessary suspension of business operations during a period of restoration following direct physical loss, damage or destruction to the business’s property as the result of a covered form of peril.
• Theft and Vandalism: Covers money and securities losses that are a result of owner, executive or employee action.

Additional policies can be added to a business owners policy to cover buildings, contents, personal property of others on your premises, falling object damage, fire, wind and non-flood water damage and more. Some BOPs can also include equipment breakdown, glass or signage, and exterior structures, and other specialty coverage. A BOP is most beneficial to a business when it’s tailored to a specific industry. It allows the business to have basic general liability coverage plus targeted enhancements that apply to industry-specific needs, while not having to pay for unnecessary coverage options. Signature agents are well-educated in which BOP options best fit each employment sector, so they can provide personalized recommendations to small businesses.

About Signature Insurance Group

Signature Insurance Group has been working since 1969 to provide comprehensive insurance solutions to individuals and businesses across the United States. We offer a range of insurance products and services in risk management, employee benefits, business insurance, and personal insurance, and we pride ourselves on our commitment to creating “Signature Relationships” with our clients where we commit to providing the best, most comprehensive service possible. To learn more about our goods and services, contact us today at (800) 464-3606.

Posted in: blog Business Insurance