Business Owners Policy in Virginia
What is a business owners policy?
Many small businesses in Virginia are exposed to an array of common risks. For those common risks, there’s a business owners policy.
A business owners policy (BOP) is an insurance package with multiple coverages. The package is designed to meet the needs of many small to medium-sized businesses.
Which types of businesses in Virginia are well-suited for BOP insurance?
BOP insurance is frequently the preferred option for small businesses with fairly standard insurance requirements. Most Virginia businesses without peculiar risks should consider this type of policy.
Is BOP insurance necessary for home businesses?
No matter the location of a business, certain insurance coverages are typically recommended. Most businesses have assets that would cost significant amounts to replace, and nearly all businesses are exposed to at least some liability risk.
For these reasons, even home businesses can often benefit from getting insurance. A home business may be small and have limited risk exposure, but it takes just one disaster or lawsuit to financially devastate a small business.
Some homeowners policies might include a standard or optional provision for home business coverage, in which case BOP insurance might not be needed. If such a provision isn’t available, though, BOP insurance would likely be a wise investment.
An insurance agent who’s familiar with BOP policies can assist home business owners in finding the best way to secure the coverages their business needs.
What kinds of protection can BOP policies offer to small businesses?
Coverage terms can vary between any insurance policies, but most BOP policies have fairly uniform protections. Standard BOP policies typically offer three main coverages:
- General Liability Coverage: This may protect a business from common accidents resulting in third-party injury or property damage. These can be accidents at a business’s location or elsewhere, depending on the specific coverage terms. The coverage usually also protects against defamation and false advertising lawsuits.
- Commercial Property Coverage: This may help with rebuilding costs if a business’s facilities, equipment, supplies, goods or inventory are damaged or lost. Coverage might apply at a business’s facility and/or when items are taken to other locations.
- Business Interruption Coverage: This may help with ongoing revenue losses if a business is unable to operate for an extended time after a disaster. Coverage might apply for a specified time, until operations resume, or for a period after operations initially resume.
In addition to the three coverages which are pretty standard, some BOPs also provide protections such as cyber liability coverage (for digital threats) and commercial auto coverage (for commercial vehicles). A knowledgeable insurance agent can help business owners evaluate whether they should look for a policy with these additional protections.
How much are the premiums for BOPs?
The premiums of BOP policies vary as they are based on a myriad of factors associated with a business. The geographical location of the business, its size, its operations, the industry it belongs to, and its past insurance claims are among the considerations for an insurance company.
Nonetheless, these policies tend to be affordably priced. One of the primary aims of BOP policies is to ensure that basic insurance coverages are accessible and affordable for small businesses.
An independent insurance agent can request quotes from different insurance companies, which makes it easy for business owners to find out how much a policy will be for their particular business.
Are business owners’ policies and commercial package policies the same thing?
Business owner’s policies and commercial package policies are distinct types of commercial insurance policies. Both have multiple coverages, but they aren’t the same.
Business owner’s policies generally provide basic coverage for small businesses without peculiar coverage needs. Commercial package policies usually offer a wider range of coverage options and can be extensively customized, which makes them good for larger businesses and those that have particular coverage needs.
How can Virginia businesses find a business owners policy?
For help choosing a business owner’s policy, contact the independent insurance agents at Hampton Roads Insurance. Our agents will work closely with you to make sure your Virginia business is well protected.
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