What is a BOP?
A business owner's policy (BOP) is an insurance solution that lets small businesses (which are often defined as businesses with fewer than 100 employees) consolidate several individual policies into a single package. This isn't just convenient, but can also save businesses money. If you own a small business in New Hampshire, here is how a BOP might save you money.
Two Major Reasons Why a BOP Saves Money for NH Small Business Owners
1. Reduces your Financial Risk Exposure
First, a BOP is a form of insurance. As such, it reduces a business' exposure to possible financial loss. If your business has property damaged or is named in a liability law suit, one of the coverages in a BOP may protect your business from a major financial loss. Without insurance coverage, damage to property or a liability suit could devastate your small business' finances.
While this protection itself won't reduce your small business' daily operating expenses, it could save you a lot of money in the long run if your business suffers a covered incident. In some cases, it may even save your business from having to declare bankruptcy.
2. Bundling Insurance Discounts
Second, bundling several insurance coverages together almost always leads to savings. Just as most individuals who get multiple personal insurance policies (like homeowners and auto insurance) from the same insurer often qualify for discounted rates, businesses can also often get lower rates by purchasing multiple commercial policies from one insurance company.
The two primary coverages that most BOPs bundle together are general liability coverage and commercial property coverage. Because these are two significant insurance policies, the discounts that come with bundling it together are often impactful. In addition to these coverages, any others that are added to a BOP normally also come with a discounted premium.
Exactly how much your business stands to save by bundling coverages together in a BOP depends on many factors, including the size of your business, the location of your business, and what industry your business is in. A hair salon in Hanover, NH, a restaurant in Concord, NH, an electrical contractor in Berlin, NH and a residential contractor in Portsmouth, NH will probably all pay different rates for general liability coverage and commercial property coverage, and the discounts they receive from bundling coverages will similarly vary. Each of them, however, will likely save by bundling coverages with a BOP -- and every amount saved is significant when you own a small business.
These discounts will help reduce your business’ overhead. By providing monthly or annually savings, they can help you keep your business operating expenses low. Keeping operating expenses as low as possible, of course, is integral to competitively pricing products and services, and maximizing profits.
Get the Best Rate on BOP Insurance for your NH Small Business
As is the case with personal policies, insurers in New Hampshire charge different rates and offer different discounts for bundling coverages. To make sure you get the lowest possible rate on a BOP that your business qualifies for, talk with an independent insurance agent, like HPM Insurance. Unlike an agent who is affiliated with a particular insurance provider, an independent agent will be able to get quotes from every insurance company that offers BOPs in New Hampshire. From these quotes, you’ll be able to choose the best one that provides the coverages your business needs and the biggest discounts possible.
This material is for informational purposes only. All statements herein are subject to the provisions, exclusions and conditions of the applicable policy, state and federal laws. For an actual description of coverage, terms and conditions, please refer to the applicable insurance policy or check with your insurance professional. The illustrations, instructions and principles contained in the material are general in scope and, to the best of our knowledge, current at the time of publication.