Business Owners Policy in Texas & More

What is a business owners policy?

Small businesses often are exposed to certain common risks. Texas businesses can often protect themselves from these common risks by purchasing a business owners policy.

A business owners policy (BOP) is a multi-coverage insurance package tailored for small to medium-sized businesses. Policies make it easy for business owners to manage their insurance needs.

What Texas businesses does BOP insurance meet the needs of?

BOP insurance is often a good choice for small businesses that have basic insurance needs. Home businesses, local businesses, and even medium-sized businesses in Texas should consider this option.

Do home businesses need BOP insurance?

Regardless of where a business is located, at least some insurance coverages are normally recommended. Most businesses have assets that would be costly to replace. Almost all businesses have some liability exposure.

This extends to home-based businesses, which generally should carry basic insurance. Some homeowners policies might offer an endorsement for a home business, in which case BOP insurance probably isn’t necessary. Purchasing a BOP policy is likely wise if coverage isn’t available through a homeowners policy.

An insurance agent who knows BOP policies well can help home business owners decide how they can best procure the protections that their business needs.

What protections does BOP insurance make available to small businesses?

BOP policies normally come with three primary coverages. These are:

• General Liability Coverage: May provide protection for a business in the event of common accidents leading to third-party injury, or property damage for which the business is held responsible
• Commercial Property Coverage: May help to mitigate financial losses if a business experiences damage or loss to its facilities, equipment, supplies, products, or inventory
• Business Interruption Coverage: May offer financial support if a business faces prolonged revenue loss due to a covered disaster

In addition to these main coverages,s some businesses also offer cyber liability coverage (for online threats) and commercial auto coverage (for business vehicles). A knowledgeable insurance agent can help business owners determine if they need these or any other protections.

How much do BOP policies cost?

BOP policies have varying premiums, for they’re based on many different factors related to a business. A business’ location, size, operations, industry and previous insurance claims are just a few of the details an insurance company will check. 

Even with variance, however, these policies tend to be affordable. One of the main purposes of BOP policies is to make basic insurance coverages available to and affordable for small businesses.

Business owners that want the lowest possible premiums might be able to save by increasing their deductibles, taking loss-prevention stems (e.g. implementing safety protocols, installing a security system, etc.), paying in full, and through other discounts.

An independent insurance agent can help businesses check what discounts insurance companies will offer. An independent agent can also find which company has the best discounts, since independent agents aren’t obligated to promote any one insurer.

Are business owners policies the same as commercial package policies?

Business owners policies and commercial package policies are two types of commercial insurance policies that bundle coverages together. They aren’t the same, though.

Whereas business owners policies usually provide basic coverages, commercial package policies tend to have many more coverage options. The latter can be highly customizable.

Business owners policies are suitable for many small businesses. Small businesses in certain industries, however, might need the additional coverage options that a commercial package policy offers.