Small businesses in Massachusetts are frequently exposed to common risks and have similar insurance needs. Even businesses in vastly different industries and locations often require similar insurance coverages. Many small businesses find the protections they need through a business owners policy.
A business owners policy is a specialized package policy that combines several individual commercial insurance policies together. The policies included are generally designed to meet the insurance needs of small- and medium-sized businesses that have typical risk exposures.
While the exact coverages offered in business owners policies can vary, most BOPs include some form of the following protections:
General Liability Coverage, which typically offers protection against certain common accidents, as well as slander, libel and false advertising claims
Commercial Property Coverage, which typically protects property that a business owns, possibly including land, buildings, equipment and/or inventory
Business Interruption Coverage, which typically protects against certain interruptions in a business’ operations that are caused by covered perils
Commercial auto coverage, cyber liability coverage and other coverages may also be included in a BOP.
Business owners policies and commercial package policies both provide multiple coverages that help businesses protect themselves from risks they face. The number and kind of risks that the two different types of policies protect against differ, though.
While BOPs tend to provide coverage against risks that many businesses face, CPPs normally can be set up to provide against a greater quantity of risks and more unusual risks. It’s not unusual to have many coverages to choose from when purchasing a CPP. These coverages might range from common general liability coverage to highly specialized farming or ranching loss coverage.
Many small and medium businesses in Massachusetts can benefit from having a BOP. While a few small businesses may only need one coverage, most face at least a few different risks that call for a BOP’s multiple coverages.
Larger businesses and ones that have unique risk exposures may find a BOP’s protections insufficient. These businesses tend to be the ones that need the more robust and flexible protections of CPPs.
Business owners policies usually don’t include workers compensation coverage. Businesses that have employees need workers compensation normally purchase it as a separate policy. Most insurance agents that offer business owners policies can also assist with selecting workers compensation policy.
Compare to purchasing insurance coverages individually, business owners policies offer two primary benefits. First, insurance companies often provide discounts for lumping multiple coverages together in a package policy. Second, paying one premium rather than several makes managing a business’ bills slightly easier.
Insurance companies take into account many different factors when setting premiums for business owners policies. Some of the items insurers consider are:
Where a business’ headquarters, offices or property is located
What industry a business operates in
How much a business makes in annual revenue
What coverages, limits and options a business selects
Because there are so many factors, it’s impossible to know exactly how much a BOP will cost without requesting a specialized quote.
For help requesting quotes and selecting a business owners policy, business owners in Massachusetts should contact a Garrity Insurance agent who specializes in this type of insurance. Our agents are well-versed in business owners policies and will also be familiar with commercial package policies, so they’ll be able to explain which type of package policy is better suited to a particular business’ needs. Whichever they recommend, they’ll be able to request quotes and compare policies from different insurers since we're independent.