A Business Owner Policy, or BOP, provides financial coverage for many businesses. This is a simple, streamlined form of business insurance. It usually gives companies the ability to keep costs low. However, it often provides for most needs.
Before renewing this policy, take a closer look at it. It may be time to add to it. And, discounts may apply to reduce costs.
#1: Do policy limits still match the company's needs?
Verify the current limit on the BOP. Ensure it is at least enough to cover the company's current risks. If not, request to increase it. This will reduce risks.
#2: Does the policy offer cyber and data breach insurance?
Cyber insurance and data breach coverage is important. It is one of the more important coverage options for small to medium businesses today. It is growing in popularity due to increased risk. It often remains very inexpensive. However, it becomes essential coverage if a data breach occurs exposing your customers.
#3: Does the policy offer business interruption coverage?
This is also an important coverage to include. Not all business insurance includes it. The policy covers costs incurred as a result of having to move the business while repairs occur. This applies when an incident occurs that the policy covers. It can provide significant financial support to most companies.
#4: Is umbrella insurance important now?
As companies grow, risks grow. Every business will see liability risks grow. This is normal as the company's revenue expands. It also occurs when the company gets more customers. Umbrella insurance helps expand liability coverage. It generally remains affordable. However, it provides financial support should a claim occur. Most companies need more than $1 or $2 million in liability insurance. This helps reach those goals.
#5: What additional discounts does the company obtain?
Renewing a BOP with the same company is an option. It is also an option to find a new provider. There is often no downside to switching.
Ask your existing insurer for a lower rate. Discuss discounts rated to no claims or long-time service. If the company cannot offer a lower price, ask why not. Then, compare rates with other companies as necessary. There is no benefit to overpaying for coverage.
A BOP may not always be enough. Many companies need expanded insurance. A more comprehensive plan may be ideal for your needs. Your business insurance agent can help determine if this is the case. He or she will make recommendations to you. Additionally, the agent can help adjust any claims, deductibles or terms. Review all of these factors each year. Whenever the policy is set to renew, pay close attention to the changes from one year to the next.
Have questions or want Buschbach Insurance to help you review your current coverage? Call our office at 708.423.2350 or email your questions for prompt reply.
Additional Business Resources for you:
What is a Certificate of Insurance and Why It is so Important?
Five Insurance Mistakes Small Businesses Make