Will a Business Owner’s Package (BOP) Save You Money?

Friday, October 23, 2015

In a word: Yes.

A business owner in Texas should consider a Business Owner’s Package (BOP) to consolidate your insurance needs and save money at the same time.

By combining your property and liability coverage, you can get the basic coverage you need. BOPs are a popular choice among small to medium sized businesses because it can be a measurable bargain.

The property section of the BOP usually offers specific perils or all-risk coverage. You might even find policies that include extra expense policies as part of the BOP.

The liability section of a BOP is similar to a Commercial General Liability (CGL) policy. The main difference is that a BOP gives you much less flexibility in determining your coverage limits for particular claims. It's important, though, to note that a BOP usually won’t include professional liability insurance, which protects you from losses or expenses resulting from claims of errors or omissions or negligence in your business.

Although there are qualifications that must be met such as: 100 or fewer employees and revenues that do not exceed $1 million, a basic BOP might still be your best choice. Ask your insurance agent if there are any other criteria based on the state in which you live.

If you find that BOP coverage limits are too low or lacking in option flexibility such as coinsurance, talk with your agent about options. The fact remains that while a BOP may lack flexibility it is a standout for lower premiums.

Depending on your type of business, you may need other coverage not included in a BOP, such as fleet insurance and workers compensation. In that case, these can be purchased separately as add-ons. It’s recommended that small businesses get more liability insurance than what’s included in a BOP, since the amount and kind of liability facing each business is usually specific to their industry. A basic BOP might not be enough in some cases, but your insurance agent will help you determine what’s best for your particular business needs.

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