Business Owners Policy Basics for Central New York Businesses

As a business owner in Central New York, you have enough on your plate without worrying about navigating the confusing terrain of insurance options. You need a solution that’s simple, affordable, and protects you from the unexpected.

At Horan, we understand your struggles. We’ve helped many Central New York businesses find the right insurance coverage, allowing owners to focus on what matters most: growing their businesses.

And the answer for many is a Business Owners Policy (BOP). This comprehensive insurance combines essential property and liability coverage into one convenient package, saving you time, money, and stress.

But a one-size-fits-all approach doesn’t work for every business. That’s why we'll guide you through customizing your BOP to fit you, ensuring optimal protection against unique risks.

This article will take you through the world of BOPs, exploring their benefits, customization options, and common pitfalls to avoid.

What is a Business Owners Policy?

Central New York businesses need to understand the basics of a Business Owners Policy (BOP). This insurance combines two important coverages: liability and property.

Instead of purchasing two separate policies, a BOP offers both in one convenient package. It simplifies things and often lowers costs.

But a BOP isn’t just a generic policy. It can be customized to fit your specific business through endorsements and riders. This means a mechanic’s BOP will look different from a restaurant’s BOP, even though they both serve the public.

Why? Each business faces unique risks. The main risk of a restaurant in Utica might be food poisoning. An auto service business three blocks over needs coverage for driving customer cars. Both risks are covered by a tailored BOP.

CNY Companies with Ordinary Risks Still Benefit From Customizable BOPs

Every business could benefit from a Business Owners Policy (BOP), even if your risks seem ordinary. That’s because a BOP can be flexible, customizable, and often cheaper than two separate policies.

For example, if you’re a small retail store, you don’t have exceptionally unique risks. Yet, a BOP fits your business perfectly. You need property and liability coverage, so a packaged policy makes sense. It’s simpler, cheaper, and easier to manage.

However, even with seemingly ordinary risks, businesses like yours can still customize their BOP. You can add endorsements, like employment practices liability insurance if you have employees. This ensures you're covered for specific risks.

Not all insurance companies offer such flexible BOPs. Some package policies are more restrictive, limiting customization options. So, choose a BOP that allows you to tailor coverage to your business, even if your risks seem ordinary.

Tailoring Your Business Owners Policy for Optimal Protection

A Business Owner Policy (BOP) is a convenient way to bundle basic insurance coverages for small and medium-sized businesses. A BOP can protect your business from property damage, liability claims, and business interruption caused by unexpected events. 

However, a BOP may not cover all the risks that your business faces. You may need additional or specialized coverage depending on your industry and situation. Some insurance companies Erie or Dryden Mutual offer optional endorsements that can enhance your BOP and provide more protection. 

These may include: 

• Cyber liability coverage. Covers the costs of notifying customers, providing credit monitoring, and complying with state laws if your business experiences a data breach (first-party cyber liability). It also covers the costs of legal fees, settlements, and fines if your business is sued for a cyberattack or data breach that affects a third party (third-party cyber liability).
• Employment practices liability coverage. Covers the costs of defending your business against claims of discrimination, harassment, wrongful termination, and other employment-related issues. 
• Professional liability (E&O) coverage. Covers the costs of legal fees, settlements, and judgments if your business is sued for negligence or errors in your professional services. Some businesses may need to buy this coverage separately from their BOP. 

Business Owners Policy: Understanding Your Coverage Gaps

Depending on your business needs, you may also opt for endorsements such as equipment breakdown, spoilage, crime, and forgery. These endorsements may not be available or sufficient for all types of businesses or industries. 

For example, some professions, such as law and medicine, may require separate policies for professional liability. Some businesses, such as manufacturers or auto repair shops, may not qualify for a BOP at all because of the higher risks they face. 

To qualify for a BOP, your business must meet certain criteria set by the insurance company. These criteria may include your industry, claims history, and business size. 

Some factors that may affect your eligibility and pricing are: 

• Your industry. Some industries, such as construction or banking, may be considered too risky or complex for a BOP. They may require more specialized coverage. 
• Your claims history. If your business has a history of frequent or large claims, you may have difficulty obtaining a BOP or pay higher premiums. 
• Your business size. Some insurance companies may have limits on the number of employees, annual revenue, or square footage of the business premises to qualify for a BOP. 

The insurance industry is moving away from the traditional “business owners policy” (BOP) terminology. Many carriers now call their package policies things like “business security policy” or simply “package.” While some companies still use the term “BOP,” like NYCM, Travelers, and Main Street, it’s important to understand what a BOP doesn’t cover.

BOP coverage typically doesn’t extend to:

• Worker’s Compensation: This coverage is mandatory for most businesses with employees. It provides benefits to employees who are injured or become sick due to their work.
• Short-Term Disability: This coverage helps replace lost income if an employee is unable to work due to a non-work-related illness or injury.
• Commercial Auto: This coverage protects your business if you own or lease vehicles used for work purposes.
• Bonds: These are financial guarantees required by some businesses or occupations, such as construction contractors, to protect customers from financial harm.

A BOP is not a one-size-fits-all solution for business insurance. When choosing a BOP, consider your specific needs and ensure the carrier offers the desired coverage options. For expert guidance about your eligibility for a BOP, consult an insurance agent.

What to Do If You Can’t Get a BOP: Other Options for Business Insurance

If you can’t find a suitable BOP for your business, you have other options to get the coverage you need. You can choose a Commercial Package Policy (CPP), which lets you combine different policies and set different limits for each one, giving you more flexibility and customization. 

You can also buy separate policies for specific risks that are not covered by a BOP or a CPP. You can also look for specialized insurance providers who offer policies for high-risk industries or businesses with unique requirements. 

Finding the right BOP or CPP for your business can be complicated, but you don’t have to do it alone. An experienced insurance agent can help you isolate risks, find the best options, compare quotes and coverages, explain any limitations or exclusions, and help you get additional coverage if needed.

Focus on Growth by Locking in Business Protection

We understand this can all feel overwhelming for business owners like you. You have so many responsibilities already without having to sort through insurance options too. But finding the right coverage doesn't have to be complicated or stressful.

By working with an experienced agent, you can secure protection tailored specifically to your business's needs—whether that's through a flexible BOP or customized commercial policies.

That’s what the Horan agency is for. We'll help you identify risks, explain options and exclusions in plain language, and ensure you have adequate safeguards in place.

With the proper insurance plan secured, you'll gain much-needed assurance knowing you've shielded your livelihood from financial threats. Just imagine finally having the freedom to focus entirely on pursuits that drive growth, not hours lost to worrying. 

The choice is clear: prioritize securing the right insurance now so you can get back to what matters most—taking your business to new heights. The expert guidance is here whenever you're ready.

Click the Get a Quote button below to lock in the business protection that’s right for you.