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Many small businesses in Massachusetts have similar insurance needs to one another. A business owners policy is designed to meet the common insurance needs that most small businesses have.
Business owners policies are generally crafted as package policies that combine several insurance coverages together. While there are common coverages that get included in most of these coverages, the exact protections that a business owners policy offers can frequently be adjusted slightly to suit a particular business’ needs.
Within the insurance industry, business owners policies are commonly referred to with the acronym “BOP.”
Broadly speaking, Massachusetts businesses can likely benefit from BOP insurance so long as the businesses aren’t overly large and don’t have unusual insurance needs. So long as a small business has fairly standard insurance needs, this is likely the right type of policy for the business.
While home-based businesses are far from the only type of businesses that may want BOP insurance, this is often a good option for people who run a business out of their home office or garage. Personal insurance policies often exclude business activities, and a BOP normally offers basic and affordable coverage.
Anyone who’s unsure whether a BOP will adequately meet their home business’ needs should speak with an insurance agent who specializes in these types of policies. A knowledgeable agent will be able to make an informed policy recommendation after reviewing the exact risk exposure of a particular home-based business.
As stated, most BOPs come with some fairly common protections. Some of these common protections include:
A couple other coverages that BOPs might offer are:
(In a few situations, the exact coverages that a particular BOP comes with or make available may differ from what’s listed.)
One coverage that’s notably not mentioned above is workers compensation. This is a coverage that usually protects against job-related illnesses and injuries, and it may be an important protection for many business owners. Additionally, small businesses that have traditional employees are frequently required by state law to carry the protection.
Workers compensation typically isn’t included in a BOP, however. Businesses that need this coverage normally must purchase this coverage separately instead.
Since business owners policies are generally restricted to certain common coverages, premiums for these policies tend to be quite low. Many policies are intentionally designed so that even small businesses with limited resources can afford the policies.
This isn’t to say that every BOP has the same low premium, though. One of the best ways to find out which BOP offers the most affordable premium for a certain set of coverages is to compare policies with an independent agent. An independent agent can assess a business’ needs and then search BOP offerings from multiple insurers to find out which insurer offers the needed protections at the best rate.
If you think this insurance might be right for your Massachusetts business, contact the independent insurance agents at The FeingoldCompanies to discuss getting a business owners policy. Our agents can help you determine whether this indeed is the most appropriate type of policy for your business, and they can assist you in searching for a robust and affordable BOP if your business does need one