Business Owners' Policy: Finding The Right Price For You

Inflation is one of the biggest problems for consumers and business owners.

According to a report by Bloomberg, as many as a third of small businesses in the United States could not pay rent for October 2022. The report underscores an underlying fear for most Americans: that operations are becoming prohibitively expensive and almost impossible to maintain.

With prices for everything going up, your business insurance coverage is becoming more vital. Getting the right value from your business policy can mean the difference between this month’s rent money and losing your business in its entirety.


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Why You Need A Small Business Insurance Policy

Some people feel that business insurance is unnecessary. However, when you run a small to medium-sized business, you need to think carefully about the type of coverage you need. You’re vulnerable to lawsuits and accidents if you've opened your doors. Having the right insurance policy in place means you can bounce back from a disaster.

Small business owners often believe that they have enough coverage. While a liability insurance policy may be sufficient to cover you for bodily injury and property damage to other people, it doesn’t cover theft or damage to your property. For example, the coverage will be void if something happens to your business property. 

A business owner’s policy, or BOP, is a more comprehensive option. It includes commercial liability insurance, property insurance, business interruption insurance, and other forms of coverage. 

A BOP is especially important for small business owners who own a storefront. A BOP protects any physical assets you have. If you rent space, it doesn’t protect your investment, but insurance does. 

Owning a small business is risky, and you need insurance to protect your business. It’s up to you to find the right coverage for your business. There are several benefits to owning a business owner’s policy, which may include:

1. Protection For Your Business 

Your commercial property insurance is there to protect you against damages and losses that stem from a variety of occurrences. These include theft, fire, vandalism, and natural disasters. Therefore, your insurance policy will cover the costs of rebuilding your business if a natural disaster strikes your area.

2. Protection For Yourself And Your Employees 

Your small business insurance policy should also protect you and your employees in the workplace. This includes accidents that occur on your premises. The insurance plan will cover the injured party's medical costs and loss income due to the accident. 

3. Protection From Lawsuits 

You also want protection from lawsuits. Your small business insurance policy covers the cost of settling or defending lawsuits. Lawsuits are an expensive inconvenience, but your business insurance policy will take care of the cost of legal fees.  

rogue3How Much Does A Business Owner Policy Cost?

With growing inflation across the United States, you’ll wonder how much a business owner’s insurance may cost you. The truth is that every policy varies depending on the needs of the business. The cost of a business owner’s policy depends on several factors. These include:

  • the size and location of the business  
  • types and level of coverage
  • cost of assets
  • value of coverage
  • property value, age, and safety

Small business owners often think that their plan is too expensive.

However, as you add more coverage, the cost will increase.

There are a few different ways to determine the business owner's policy costs. 

  1. The size, location, and type of business will all impact the cost of your commercial property insurance. For example, the coverage costs will be higher if you own a large commercial building. Property size determines the general coverage and liability that the provider needs to protect.

  2. The cost of covering property will also depend on where the assets are. For example, if you own a storefront and your business has valuable inventory and computers, the coverage costs will be higher. 

BOP also has various coverage types and levels, the most basic of which is general damage protection and legal coverage. Depending on the coverage, this can go from anywhere between $50 to $200 a month.

Most insurance providers also tack on several inclusions to business insurance. For example, suppose you have a robust online presence. In that case, data breach insurance or cyber liability insurance can be a fantastic add-on that covers expenses related to cyberattacks and data breaches.


Things To Consider With Business Owners’ Policy

Business insurance offers protection against many types of disasters. However, you must ensure you have the right coverage for your business. There are some things you need to consider when you’re shopping for a business insurance policy. They include: 

What Types of Coverages Do You Need? 

Some business owners need clarification about what type of coverage they need. A business owner’s policy includes multiple types of coverage. However, some business owners need extra protection. For example, owning a landscaping business may need additional coverage to protect equipment during transportation.   

The type of business you own will determine the coverage you need. For example, you may require medical malpractice insurance if you're a doctor. However, you may need more liability coverage if you're a contractor. 

How Much Will Your Business Grow? 

When shopping for a business owner’s policy, you need to consider how much your business will grow. For example, owning a small landscaping company may not need as much coverage as a larger company. 

However, your coverage needs will increase if you’re a growing business. A BOP is a great way to cover your business as you grow. For example, if you need to expand your small business, you can add additional coverage. 

Are There Any Employees Involved?

A business owner’s policy offers coverage for employees’ injuries that take place in the workplace. However, you need additional coverage if you’re planning to hire employees. For example, if you employ independent contractors and seasonal workers, you need workers’ compensation insurance. 

Lowering Your Premiums To Help With Inflation

As inflation increases, the cost of doing business increases. There are several measures you can take to lower your business insurance costs.

Keeping your insurance policy up to date is essential. When your policy expires, you may run into problems. For example, if your business has grown, you may need to add more coverage. However, if your policy has expired, you may need to have the right coverage in place.

On the other hand, when you initially purchase a business insurance policy, you may carry a lot of coverage. However, as you grow, you may no longer need the coverage. You may want to consider lowering the amount of coverage you carry. 

Even though you may at times experience issues with a provider, there may be times when your provider doesn’t offer the coverage you need. You may also wish to change the provider. For example, if you’re happy with your provider, you may only want to change coverage to something more specialized.  

Deductibles are the portion of your business’ losses that you will pay for. For example, if you have a $1,000 deductible, you will only be required to pay $1,000 before the insurance company pays. Lowering your deductible will save you money. 

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Get The Right Business Owner Policy Today

Owning a small business comes with risks and opportunities. However, the right insurance coverage can protect your business’s physical assets, inventory, and workers’ compensation. Take the time to find the right coverage for your business. 

When it comes to business insurance, a business owner’s policy may be the best option. If you’re a business owner, you have a lot of responsibilities, and you need insurance. A BOP offers protection, and it’s affordable. 

However, the cost of a BOP can vary. Some business owners find it hard to purchase business owner’s policy because of high premiums. However, there are measures you can take to lower the costs. You can also find small business insurance quotes online. With so many options for business owners, it’s easier than ever to find coverage at an affordable price. 

At Rogue Risk, we believe a solid commercial insurance program provides the sustainability needed for businesses to take the necessary risks for profitable growth.

If this is the relationship you want with your insurance broker, we would love to talk to you.

I look forward to introducing you to a new way of viewing your insurance program.

Thank you,

Ryan Hanley


  • Article by Sophia Young

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