A business owner’s policy (BOP) can protect you.
What is a business owner’s policy?
A business owner’s policy is an insurance policy that protects small to mid-size businesses and provides protection for all major property and liability risks in one package. Purchasing a business owner’s policy is suitable for all small to mid-size businesses, but it is especially suited to professionals like accountants, CPAs, doctors, lawyers, real estate agents, property management, and any kind of business that does work within their office.
Why do you need a business owner’s policy?
You never know what’s going to happen in your business, so it’s best to be prepared for the unexpected.
- Someone could get hurt in your waiting room or storefront.
- A natural disaster like a hurricane, windstorm, or tornado could occur and destroy things in your office.
- Your data could be breached.
- You could make a mistake, and someone could sue you for it.
All of these things have the potential to happen and have happened. If you don’t have a business owner’s policy, then you may be financially and legally responsible for whatever happens at your business.
Some of the most common reasons to have a business owner’s policy are if someone injures themselves in your place of business, to protect against data theft or loss, to prevent cars from going through your storefront, and to protect against damaged equipment.
These things may sound unlikely, but they occur more often than you think.
Accidents happen. There are scam artists who make a living off of pretending to injure themselves in small businesses. This often leaves the business owners vulnerable to a lawsuit if they don’t have a business owner’s policy.
With more and more people learning how to hack into computer servers and the internet, data loss and data theft become an even bigger threat. If your business keeps private financial records or sensitive information, then this data could be released out into the public, resulting in a breach of responsibility. This could leave you liable for any damages incurred by your clients or a lawsuit. In the last 10 years, companies like Target, Yahoo, Mariott, and eBay have experienced a data breach. If it can happen to them, it can happen to anyone. Our own government has had data theft issues.
Cybercriminals will even demand money and hold your data ransom demanding that you pay them for it. Around 43% of all ransomware attacks take place on small businesses. With ransomware, a type of malware is used to lock your computer until you pay the ransom to get all of your data and files back. Hackers have been known to slowly delete files until you pay the amount they are demanding.
If data is breached and released with your client’s information, you can be subject to fines. For example, if you run a medical practice and HIPAA data is released, it can be subject to a $1.5 million fine or more. That’s much more than most small businesses can handle, so the small investment into a business owner’s policy is well worth the peace of mind.
Florida Drivers Crash Into Storefronts At An Alarming Rate
It may sound unlikely that a car would drive through the front of your storefront, but it does happen from time to time, especially in big states.
Florida has more cars that crash into buildings and storefronts than any other state. The Storefront Safety Council, an advocacy group for barriers, found that Florida led the nation with 17% of all storefront car crashes in 2014. Other large states like California and New York are also subject to more storefront crashes. If a council exists to tackle a particular issue, odds are the problem is bigger than you think.
In 2018, a car crashed into a Verizon store in Miami causing damage to the property as well as to store merchandise and equipment. Barriers that prevent cars from crashing into storefronts aren’t always required, and people have even been killed from it. In Florida, a 72-year-old driver accidentally hit drive instead of reverse, killing two people in front of a boutique. Accidents happen.
What does a business owner’s policy cover?
The specific coverage in a business owner’s policy varies among providers, but most policies cover property insurance, business interruption insurance, and liability protection.
Property insurance is the portion of the policy that covers damage caused by events like fire, explosions, vandalism, natural disasters, and other related events. This typically covers properties that are owned or rented.
Business interruption insurance covers the loss of income that would result from an event like a fire or natural disaster happening that causes the business to close down. Sometimes, it can also cover the expense of operating a second location.
Liability insurance covers legal responsibility for damages that may occur at your place of business like someone getting injured or products being damaged. It can also cover you in the case that someone decides to sue you for services provided or any mistake accidentally made
In addition to these three components, the policy may cover flood insurance, vehicle insurance, and crime insurance. To get the best coverage for you and your business, it’s best to talk to an insurance provider.
How much does a business owner’s policy cost?
A business owner’s policy typically costs anywhere from $500 to $3500 per year. The average is around $1,200 per year, so for only $100 per month, you can provide protection for your business.
Why choose All Nation Insurance?
We make an effort to understand your business and make sure that insurance companies will pay you for your claims. 100% of our claims have been paid over the last 30 years because we ask the right questions and make sure people get the right policy at the right price. Additionally, we work with quality insurance companies that you can trust to do the best job for you. When a claim doesn’t get paid, it’s often because the policy didn’t contain all of the information or the proper information. We make sure to provide complete and accurate information in our policies by providing the information to the carrier and communicating with you.