Office Insurance 101: BOP for Commercial Offices
It may come as a surprise that an estimated 75% of small businesses are currently underinsured. You may have met legal requirements, such as providing Workers’ Compensation for your office employees, but there could still be gaps in your coverage.
How can you get protection without spending time searching for multiple coverages? A Business Owners Policy (BOP) from PolicySweet® combines general liability, property, and cyber risk insurance into one easy-to-manage policy.
Why should offices consider obtaining a BOP? Are you in need of an insurance policy? Read on to find out.
Who Needs a Business Owners Policy?
Business Owners Policies are designed primarily for small to medium-sized businesses. There are several signs that you may want to consider a Business Owners Policy. For example, you may want to get a BOP if:
- You own business property like office furniture, computers, or office supplies
- Clients or customers enter your office
- You have protected data on your hard drive, a cloud system, or online
Even contactors and freelancers might want to consider a Business Owners Policy if they use a designated office space or own work-related property.
What Is General Liability Insurance?
General liability insurance, also called business liability insurance, could be a requirement whether or not you take clients in your office space. The purpose of general liability insurance is to help protect your business from third-party claims filed for:
- Bodily injuries
- Property damage
- Reputational harm
- Libel or slander accusations
- Advertising injuries
For example, a client could file a claim if they slipped and fell on your property and sustained a serious injury. A competitor could file a claim if they felt that your words against them were slanderous. Without general liability insurance, these kinds of claims can result in financial compensation paid out of pocket.
What Is Property Insurance?
You might assume that you don't need property insurance if you lease your business property. Even temporary office holdings may include things like:
- Tools and equipment (e.g., printers, computers, and fax machines)
- Furniture and fixtures
- Company items and inventory kept in your office
- Computer equipment used by you and your employees
Property insurance can cover certain losses of business property, including theft and some types of damage. It can be easy to take your business property for granted, but the need for repair or replacement can financially impact many small office-based businesses. Property insurance can often get businesses back on their feet, helping to cover both lost income and property loss or damage.
What Is Cyber Risk Insurance?
Gone are the days when only IT companies and cyber security professionals should worry about cyber risks. Cyber security breaches can be costly. As office-based businesses become more reliant on technology, this threat can become even more pressing.
The reality is that you are not the only one at risk for cyber threats. Imagine a data breach that leaks your clients' private information. You now have to consider the cost of investigating the cause, informing your clients of what has happened, and any lawsuits or settlements that may ensue as a result.
As viruses, malware, bots, and artificial technology become more sophisticated, your protection software may not be enough to help protect your business. Cyber risk insurance is just one of many lines of defense that offices should think about in this digital age.
What Is a Covered Loss?
Perhaps you already have one of these policies in place. Wouldn't something like general liability insurance cover other areas? Could you use property insurance to cover cyber risks caused on your business property?
One of the reasons that so many businesses are underinsured is that they don't understand what their current policies can over. A covered loss refers to both the type of damage a policy covers (e.g., property vs. third-party claims) and the cause of that damage.
Take property insurance, for example. It can be important to understand when you can file a claim for property damage and when you can't. You may need to increase your coverage for certain causes of damage, such as certain weather-related events.
One of the best ways to make sure you've got the coverage you need is to talk with our insurance experts at PolicySweet. Together, we can create the policy that works for your office.
What Impacts the Cost of Insurance for Offices?
If you've avoided taking out a Business Owners Policy due to budget concerns, you're probably wondering how much you'd need to pay in premiums to get comprehensive coverage. The reality is that each policy's cost depends on a wide variety of factors, including:
- Your coverage limits (the maximum amount of coverage you can receive to cover the cost of damages)
- Your industry and its level of financial risks
- The value and amount of business property you're covering
- The geographic location of your business
- The size of your business
- Your claims history
At PolicySweet, we strive to make it easy to get the coverage you need. After answering a few questions about your business, we'll send a no-obligation quote. You can accept our offer and get immediate coverage.
Contact PolicySweet for Coverage
As you prepare for the next year of expenses, it might be time to think about the ones your current insurance coverage doesn't protect you from. A Business Owners Policy can cover some of the common bases for offices, and PolicySweet can help. Make it your resolution to help protect your business from the unexpected.
At PolicySweet, we have worked with offices, contractors, retail businesses, and more to deliver insurance packages with minimum hassle. Learn more about our Business Owners Policy and request a quote today.