Small businesses need to tailor their insurance packages to meet both their coverage needs and their financial goals. After all, profit is important in a small business, and you don’t want excessive overhead burdens, including insurance costs, to eat away at that profit margin.
The easiest and most convenient way to insure a small business is often to buy a business owners policy, better known as a BOP. Within your BOP, you will find several essential business insurance options, all of which you can tailor to meet your needs. What’s more, you will also pay one, affordable price for the policy rather than having to juggle multiple premiums for separate plans.
Let’s take a closer look at how you should work with your agent to tailor your BOP.
How Can North Carolina Businesses Benefit from BOPs?
BOPs are primarily designed to insure small businesses, which have unique liabilities compared to larger operations. They are most often best for businesses with fewer than 100 employees. In North Carolina, where more than 99% of all businesses are small businesses, businesses with fewer than 100 employees have the largest share of small business employment. These smaller operations are truly the backbone of the Tar Heel State, and they can all benefit from appropriately tailored BOPs.
Customizing Your Coverage
Generally, BOPs contain three elements of coverage:
Property Insurance: Covers property like inventory, stock or owned buildings in case of unexpected damage
Liability Insurance: If someone like a customer suffers an injury or property damage that is due to your negligence, this coverage can offer them a financial settlement.
Business Interruption Coverage: Should your business be forced to close for a time following a covered hazard, this benefit can supplement lost income and other costs.
Still, you should not consider your BOP to be the end of all means to business insurance coverage. Often, you will need to augment your plan with other benefits.
Consider a few additional policy options that you might need to add to your portfolio:
Add more liability insurance. Many companies need a higher level of liability coverage and can get this benefit through commercial umbrella coverage
Employee practices liability insurance (EPLI) is also important. It offers protection if employees claim you were unfair or acted in a discriminatory manner against them
Commercial auto insurance may also be a valuable additional coverage. You need it if you operate a vehicle as a component of your business
Workers’ compensation is also important. It covers losses associated with employee injuries and illness. Most North Carolina businesses are obligated to carry this coverage.
Most smaller companies benefit from BOPs, but they will have to work alongside these enhanced benefits. Let your agent give you some guidance on your options. Doing this takes a few minutes, but it can provide incredible protection for your business.