Running a business, large or small, comes with plenty of responsibility. From keeping the accounting side of things on the straight and narrow to connecting with customers in your area, your plate is already full. Unfortunately, just because you have all of these other duties clogging up your day doesn’t mean you can ignore the future and the potential perils that lie ahead. Because of this, there’s no better time than now to learn exactly what a business owner policy (BOP) is and how it can benefit your company.

What Exactly Is a BOP?

Business Owner PolicyTo get things started, let’s look at the basics of a BOP before digging into why you may or may not need this kind of plan. As Investopedia notes, this kind of policy is sort of a “one size fits all” plan. Instead of purchasing one type of insurance at a time, picking up a BOP offers a variety of services including, but not limited to, property insurance, crime protection, vehicle coverage, liability insurance, and various natural disaster protections. In some cases, plans even offer what’s known as business interruption coverage. Essentially, this type of insurance acts as a rainy day fund if your income ever comes to a screeching halt after a disaster or other event that closes the doors of your shop.

The Risk of Skipping This Coverage

But what could happen if you skip this kind of plan? If you’re really lucky and live in a blissfully perfect world, sometimes nothing at all. However, if there’s one thing you know about daily life, the odds of nothing going wrong at any point are astronomically low. As a report from The New York Times explains, you could be putting the future of your company at risk by turning away from proper coverage.

Without the right protection on multiple fronts, all it takes is a single fire, slip on a wet floor by a customer or employee, or late night break-in to cause lasting harm to the viability of your business. On top of all of this, you might be legally bound to have certain types of insurance. If you think a fire or break-in is bad, wait until you have the feds breathing down your neck about improper insurance coverage.

Make the Right Call

At this point, it’s pretty clear that you need insurance, but the question of going with a BOP or piecing together single plans still needs an answer. Naturally, your mileage may vary, but Forbes Magazine’s take on the subject recommends the all-in-one approach of a BOP for two major reasons.

  • First, bundling your coverage is often an easy way to save a few bucks, making any business owner on a budget happy.
  • From here, it’s all about customization. With many BOPs, you can pick and choose which types of coverage go into the plan, giving you the same flexibility of buying each piece separately.

By combining these benefits, your business will stay safe and protected moving forward. The bottom line? You can’t go wrong with the right type of coverage.