BOP Insurance vs. Individual Policies: Which Is Best for Your Business?

Although thinking about things going wrong may not be the most enjoyable part of your job, as a business owner, it’s critical. Without careful consideration of all possible scenarios, you could be blindsided by unexpected losses and damages. Understanding and securing the right insurance coverage can go a long way in securing your company’s financial interests, but doing so can require a comparison of various options, such as bundling policies or keeping them separate.

What Is a BOP?

Business owners policies (BOPs) are one of the most common ways for commercial entities to bundle insurance. When you bundle coverage, you purchase more than one type of insurance from the same carrier, often as part of a single agreement. In the case of BOPs, your policy may include the following key coverages:

• General liability insurance for third-party bodily injuries, property damage and personal and advertising injuries for which you’re to blame
• Commercial property insurance to cover your physical assets, such as equipment, buildings, electronics, furniture and inventory
• Business interruption insurance for lost income and ongoing expenses following a covered incident that derails normal operations

Why Are BOPs Helpful?

A well-structured BOP can reap many advantages for your company. Its three core coverage pillars are typically valuable for most businesses, regardless of sector or specifics. Furthermore, BOP premiums often amount to lower total costs than you might have to pay if you procure each component separately.

What About Individual Policies?

Still, while BOPs can carry advantages, they may not always be suitable or even viable. Insurance carriers typically set strict size limits regarding BOP eligibility. For example, businesses with over a certain number of staff or those that earn more than a specific amount of revenue may not qualify. In such situations, these larger enterprises may need to assemble their own insurance packages by combining separate policies.

Additionally, individual insurance policies may offer other advantages for your company. While BOPs can address several common coverage needs, many companies may have remaining coverage gaps that need to be filled. Furthermore, individual policies may often include more opportunities for customization, allowing your company to augment and adjust coverage according to its unique circumstances.

We’re Here to Help

At Transglobe Insurance Agency in Chicago, IL, we can help your business assess its coverage options and find the right policies. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.