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Business Owner Policies (BOP)
A business owner policy bundles the basic protection coverages for all property, financial asset, and liability risks faced by Michigan businesses. BOP's are typically sold at a premium price and are less than the total cost of the individual commercial plans.
These insurance policies are typically targeted to small and medium-sized businesses or commercial companies that generally face a lot of high-risk situations (such as repair shops, dental practices, restaurants, and the like).
Do you want to save even more money? Bundle your BOP with your auto, home or other types of business insurance to receive up to 50% in additional discounts.
Why Compass Is Michigan's Preferred Choice For Business Insurance
- We do all the work for you by comparing about 20 insurance quotes for you.
- Great customer service with our personal touch.
- Earning the trust of Michigan since 1969.
- We don’t work for the insurance company, we work for you!
- Manage all of your insurance coverage in one place, saving you money & time.
- Our agents live locally, in or near Grand Rapids, and are deeply involved in the community.
Would you like the freedom to choose from about 20 insurance providers? Do you appreciate exemplary customer service with a personal touch? Is a sense of community important to you? If you answered “yes” to any of the above, Compass Insurance Agency is the business insurance partner for you.
We are able to work with lots of local insurance providers to offer a variety of rates, policies, and levels of coverage because we are independent agents. Your insurance coverage should meet your individual needs. We can make it happen.
We work for you, NOT the insurance companies. You are priority number one. We back up this claim with 24/7 availability through various communication channels, customization of your coverage, prompt responses when you contact us and support through each step of the claims process.
We treat our clients like family. This includes getting to know you as a person, not just a policy number. We invest in you and we will work to earn your trust.
Our personal approach extends to the local Michigan communities where our agents live. Getting involved in charities and organizations is a passion of ours.
Different Types of Business Owner Policy Coverage
Each BOP is tailored to meet the individual needs of small to mid-sized businesses. However, there are several types of coverage most business owners policies generally include.
Business Property Insurance
This coverage protects the business owner’s buildings and contents. It helps provides protection in the event of circumstances including income loss, extra expenses, equipment breakdown and expenses associated with computers, media, valuable papers and records, money and securities.
You can choose from two different versions of property insurance:
- Standard property coverage - protects the buildings and structures, indoor and outdoor fixtures, personal property furnished by the landlord and personal property used for service or maintenance of the buildings or premises.
- Special property coverage - protects property owned by the business owner and used in business operations.
Deductibles do not apply to business property insurance. Coverage is up to $25,000 on and off premises. However, on-premise limits can be increased.
Business Interruption Insurance
This type of coverage comes into play if a fire or other catastrophe caused property loss that disrupts business operations. It provides reimbursement for up to one year of lost revenue and expenses incurred from moving to a temporary location to continue business operations.
Business Liability Insurance
If regular business operations cause harm to others, this coverage takes care of the company’s legal responsibility including bodily injury, property damage due to defective products, faulty installations, and errors in services provided. It covers direct primary or legal liability.
Business liability insurance has a starting limit of $1 million per occurrence, provides $5,000 per person for medical benefits and an average of $300,000 for any damage done to the premises.
In addition to the aforementioned types of business owner insurance coverage, you can purchase the following options:
- Business income coverage - covers up to 12 months of income lost as a result of suspended operations caused by damage to the premises.
- Commercial auto coverage - protects the business in the event an employee using a vehicle not owned by the business, but for business purposes, inflicts damage.
- Data breach / electronic data loss insurance - safeguards up to $10,000 worth of lost data that needs to be replaced or restored.
- Crime insurance - protects the business in the event of situations including employee dishonesty, computer and funds transfer fraud, forgery or alteration, money and securities and property theft.
Michigan Business Owner Insurance Minimum Requirements
When it comes to business owner insurance in Michigan, some types of coverage are mandated by law, while others may only be necessary for your particular business needs.
Michigan law requires companies to carry workers’ compensation insurance if they employ three or more workers, or employ one or more workers for 35 or more hours per week for a period of 13 weeks or longer.
While professional liability insurance is not required by state law, some clients may demand proof of this coverage before agreeing to sign a contract. It can also help protect your business against lawsuits.
If you rent your office from a landlord, you may need proof of commercial property insurance or general liability insurance before they agree to enter into a lease agreement with you.
FAQs About Business Owner Insurance In Michigan
Due to the individual nature of BOP, here are a variety of factors that can affect rates for this coverage including:
- The deductible you choose. A higher deductible means a lower insurance rate and vice versa.
- Your policy’s coverage limits.
- The size of your business including the dimensions of the physical structure where you conduct business and the size of the lot.
- Your company’s physical location. For example, a business operating in Chicago, Illinois will likely pay higher insurance costs than one in Amherst, Ohio.
- The total number of employees. Companies who employ more people will pay more for workers' compensation insurance, professional liability insurance, and general liability insurance.
- The level of risk incurred by your industry. Businesses operating in industries adjudged to have a lower level of risk will likely have lower premiums than those considered to have a higher risk.
- Revenue. Companies that have more to protect will generally pay a higher premium than those that pull in less revenue.
- Premium - The fee you pay your insurance company each policy period for coverage and the handling of claims.
- Deductible - The amount of money you are required to pay before your insurance company covers the rest of the cost. A higher deductible means a lower premium and vice versa.
- Coverage limits - The maximum amount of money your insurance policy covers to pay for damages, medical expenses or the costs of fighting a lawsuit.
- Business property insurance - Protects the business owner’s buildings and contents.
- Business interruption insurance - Provides reimbursement for up to one year of lost revenue and expenses incurred from moving to a temporary location to continue business operations due to a catastrophe.
- Business liability insurance - Covers the company’s legal responsibility including bodily injury, property damage due to defective products, faulty installations, and errors in services provided if regular business operations cause harm to others.
A BOP is a bit different from other types of insurance because coverage can vary greatly from one company to another. That said, in order to get an accurate comparison, you should still make sure that you include the deductible, coverage limits and set of coverages for each quote.
It is critical to choose the policy that not only offers an attractive price but enough coverage for your business needs, as well. It is far more costly to pay out of pocket for damages, medical expenses or legal costs than to pay a higher premium.
Choosing your deductible is a personal decision. Some people prefer a lower deductible and higher premium, while others feel more comfortable with a higher deductible and lower premium. When making this decision, be realistic about how much you could afford to pay if you found yourself facing a claim.
Interesting Statistics About Michigan Business Owners
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