Business Owners Policy in Vermont

What is a Business Owners Policy?

Many Vermont small businesses have similar risks exposures and insurance needs. For lots of these small businesses, a business owners policy is the most affordable way to get the coverages that are needed.

A business owners policy is a specialized form of commercial insurance that’s specifically designed for small and medium businesses. While not as flexible or comprehensive as some other commercial insurance solutions, business owners policies are more than sufficient for many small businesses.

What Protections Are Included in Business Owners Policies?

Business owners policies are typically written as package policies, which means they combine several individual insurance policies together. Some of the individual policies that a BOP might offer include:

General Liability Insurance, which might offer coverage for common accident and some potential liability lawsuits
Commercial Property Insurance, which might offer coverage for buildings, inventory and/or equipment
Commercial Auto Insurance, which might offer coverage for vehicles a business owns
Business Interruption Insurance, which might offer coverage for certain operational interruptions
Cyber Liability Insurance, which might offer coverage for online threats and data breaches

(As is true with most package insurance policies, the exact mixture of coverages can vary.)

Is Workers Compensation Insurance Included in Business Owners Policies?

Business owners policies don’t normally include workers compensation insurance. Businesses that need this insurance usually must purchase it separately, but agents who are familiar with BOPs can usually help with the search for workers compensation.

How Do Business Owners Policies Compare to Commercial Package Policies?

Commercial package policies are another type of package policy available to businesses. These policies tend to offer more coverage options than business owners policies, but they often cost more as well.

Many larger businesses and businesses that have unusual risk exposures need commercial package policies, but BOPs offer plenty of protections for most small and medium businesses.

What Vermont Businesses Need Business Owners Policies?

Most small and medium businesses in Vermont that don’t have uncommon risk exposures can benefit from getting a BOP. A few such businesses may only need one coverage and be able to purchase it as an individual policy. In most cases, though, small businesses need at least a few coverages that are better purchased together in a BOP.

Are There Benefits to Getting Multiple Coverages Through Business Owners Policies?

Getting multiple insurance coverages through business owners policies, instead of individually, has two main benefits. First, businesses can make a single premium payment rather than several. Second, many insurance companies offer large discounts for lumping multiple coveages together in a BOP. The savings provided is more than enough to make comparing BOPs worthwhile.

How Are Business Owners Policies’ Premiums Calculated?

Insurers base business owners policies’ premiums on many different factors. Some of the items that can affect how much a specific BOP costs include:

The insurance coverages and limits selected
The industry a business operates in
The number of sales a business has annually
The location and size of a business
The business’ past insurance claims history

How Can Businesses in Vermont Get a Business Owners Policy?

When shopping for business owners policies, businesses must first determine that this is the right insurance for them and then compare the various BOPs that are available. This process can be involved and challenging.

For help selecting a business owners policy, businesses should talk with an independent insurance agent in Vermont who specializes in small business insurance. A specialized agent will be able to determine whether this is the best form of insurance for a business, and they can compare multiple policies if they’re independent.