☰ ˟
Logo facebook
  • Home
  • Get a Quote
    • AutomobileImage of right arrow
      • Automobile Quote
    • HomeownersImage of right arrow
      • Homeowners Quote
    • LifeImage of right arrow
      • Life Quote
    • Cyber LiabilityImage of right arrow
      • Cyber Liability Quote Form
    • Business & CommercialImage of right arrow
      • Commercial Auto
      • General Liability
      • Business Owners (BOP)
      • Builders Risk
      • Workers Compensation
  • Products
    • AutomobileImage of right arrow
      • Comprehensive Coverage
      • Collision Coverage
    • Homeowners
    • Business & CommercialImage of right arrow
      • Business Owners Policy (BOP)
      • Commercial Auto
    • Life
    • Cyber Liability
    • High Value Homes
    • Franchise Insurance
  • Customer Service
    • AutomobileImage of right arrow
      • Request ID Card for Auto Policy
      • Add Vehicle to Existing Auto Policy
      • Remove Vehicle from Existing Auto Policy
      • Add Driver to Existing Auto Policy
      • Remove Driver from Existing Auto Policy
    • Business & CommercialImage of right arrow
      • Request ID Card for Commercial Auto Policy
      • Add Vehicle to Existing Commercial Auto Policy
      • Remove Vehicle from Existing Commercial Auto Policy
      • Add Driver to Existing Commercial Auto Policy
      • Remove Driver from Existing Commercial Auto Policy
      • Request Certificate of Insurance
    • HomeownersImage of right arrow
      • Request Declaration and Coverages for Existing Homeowners Insurance Coverage
      • Request Evidence of Insurance
      • Change Mortgage Company
      • Add Second Mortgagee
      • Delete Mortgage Company
  • Client Portal
  • Blog
  • Make a Payment
  • Resources
    • Report a Claim
    • Refer a Friend
    • Important Links
    • Insurance Glossary
  • About Us
    • About Waymon Lynch & Associates
    • Our Locations
    • Customer Testimonials
    • Privacy Policy
  • Contact
Auto Icon Home Icon Business Icon Life Icon Health Icon Boat Icon
Home > Blog > Do BOPs Contain Deductibles?
THURSDAY, JUNE 2, 2022

Do BOPs Contain Deductibles?

Small business owners want to obtain their commercial insurance in as cohesive and affordable a package as possible. A business owners policy, also known as a BOP, will provide the solution. These policies include coverage for several of the most common liabilities present in most businesses. The plan will pay up to certain limits when compensating the business for a claim. 
business owner standing outside cafe
However, some of the limits of your plan might include deductibles. When you see a deductible on your coverage, that means that you agree to pay for a certain cost of a claim yourself, rather than obligating your insurer to pay. The good news is that you can often use the deductibles with your plan to your advantage, but it will require some attention to detail. 

Coverage Within BOPs 
BOPs are designed to provide core, foundational commercial insurance to small businesses. Usually, they include: 

  • Property & Contents Insurance 
  • General Liability Insurance
  • Business Interruption Insurance  

Each component of coverage will apply to different types of challenges. For example, if someone gets hurt in your store and sues you, then your liability insurance will pay for that third party’s losses. However, if a fire or storm were to damage company property, then you can file a claim for compensation on your property insurance. 

Deductibles will come into play under each sub-section of your BOP. You will most likely find them under your property insurance, though liability insurance generally will not have deductibles attached. When a deductible applies, your BOP will not agree to pay for 100% of your damage costs. 

Understanding Deductibles 
When you choose property insurance deductibles, your give your insurer permission to deduct an amount of money from the total amount they will pay for a claim. You, by default, agree to pay for the value of your deductible yourself. 

Suppose that a fire breaks out in your business, causing $5,000 worth of damage to your office space. When calculating your settlement, your insurer will see that you have a $1,000 deductible attached. As a result, they will only pay you up to $4,000 for your losses, since $5,000 minus the deductible value equals $4,000. 

Most BOPs include minimum deductibles, and you can choose to increase the deductibles at intervals to suit your own needs. One helpful hint to keep in mind is that by raising your deductible, you might save money on your premiums. This is because by raising your own deductible you will reduce the cost risk you pose to your insurer. 

Be careful when arbitrarily raising deductibles, however. This is a cost that you agree to pay for a claim yourself, and any claim that falls below your deductible value will not have coverage from the insurer. Therefore, you must select a deductible you can afford on your own. With the help of your business insurance agent, however, this will be an easy, affordable process. 

 

Posted 3:07 PM

Tags: business owners policy, bop
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2025
  • 2024
  • 2023
  • 2022
  • 2021

  • auto insurance(7)
  • business owners policy(6)
  • coverage(6)
  • life insurance(6)
  • home insurance(6)
  • bop(5)
  • insurance(5)
  • car(3)
  • auto(3)
  • workers compensation(2)
  • cyber liability(2)
  • builders risk insurance(2)
  • business insurance(2)
  • commercial auto insurance(2)
  • weather(1)
  • smart(1)
  • cyber insurance(1)
  • discount(1)
  • commercial property(1)
  • accident(1)
  • cyber(1)
  • general liability insurance(1)
  • bop insurance(1)
  • workers compensation insurance(1)
  • miles(1)
  • value(1)
  • commercial(1)
  • snow(1)
  • storm(1)
  • rv insurance(1)
  • farm insurance(1)
  • high(1)
  • liability(1)
  • winter(1)
  • driving(1)
  • benefits(1)
  • reporting(1)
  • workers(1)
  • employee benefits(1)
  • builder's risk insurance(1)
  • renters insurance(1)
  • home(1)
  • compensation(1)

View Mobile Version

We Are hands on
Let's Talk

facebook

Resources

  • Products
  • Customer Service
  • Payment Options
  • Report a Claim
  • About Us
  • Refer A Friend
  • Our Carriers
  • Blog
  • Contact Us

The Lynch Agency is licensed in MD, DC, VA, DE, PA, NJ, CT, RI, OH, IN, WI, IL, TN, KY, OR, WA, AL, GA, SC, FL, & NC.

Contact Us

4424 Longfellow St.
Hyattsville, MD 20781

Ph: (301) 927-6070

3016 14th St. NW
Washington, DC 20009

Ph: (202) 462-9243

278 B Bullsboro Dr
Newnan, GA 30263

Ph: (678) 423-9696
sales@thelynchagency.com

Office Hours

Monday-Friday
9am-6pm



© Copyright. All rights reserved. | Powered by Insurance Website Builder