WEDNESDAY, JANUARY 4, 2023
Basic BOPs combine general liability and commercial property insurance, but each can be tailored to the business owners’ specific needs, making prices for these policies vary.
Depending on several factors, you could be paying less than $500 to well over $1,000 for a BOP. This is why it is important to know what factors are affecting the cost of your business insurance, and how you can use them to save money.
Location
Obviously, the location of your business is a large factor. The general prices in your area affect how much you will be paying, but so does the geography and economic status of your area. If you live in an area with a history of hurricanes, tornadoes or other natural disasters, you could pay more for your BOP’s property insurance coverages. Areas with a high rate of theft and vandalism may also charge more for insurance. You can help offset some of the risk by protecting your business’ physical assets with anti-theft and storm-resistant tools and systems.
Claims History
Not only do the claims around you matter, but your own insurance history, as well. Even if you switch to a new insurer, your claims history may shadow you. If an insurer sees that you have filed several liability claims within the past few years, they may charge you more for insurance or even be hesitant to sign you. It is important to avoid accidents as much as possible and be tactful about switching insurers.
Size of the Business
The size of the business matters heavily when it comes to a BOP. Only small businesses qualify BOPs, but business sizes depend on the industry. On average, businesses with 100 employees or less re considered small businesses. If you have more employees or more than one location, you may pay more for your BOP.
Coverage Limits
One of the biggest influences on your insurance rates is the type and amount of coverage you purchase. You can add additional insurance to your BOP in order to tailor the policy to your business’ and industry’s specific risks. The more coverage you have, the more protected you are against an accident or a lawsuit. However, as expected, this means that you may pay more for insurance with higher limits.
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