In 2019, South Dakota had $2,227,477,000 in commercial insurance claims paid. When you run an operation, you have to be prepared for all the what-ifs. Business owners policy insurance can help cover your exposures as a small business.
An independent insurance agent will have access to multiple markets so that you have options on coverage and premiums. Since they do the shopping on your behalf at no cost, you'll save time and money. Connect with a local adviser to start saving today.
What Is a Business Owners Policy?
Your South Dakota business will need to account for all your risks. The right coverage is necessary to avoid financial ruin. Check out the policy that can get you there.
- Business owners policy (BOP): This will include liability coverage for bodily injury and property damage. Any business property will be included for replacement and repair in this policy.
Business Owners Policy Coverages
Every carrier will have its unique spin on coverage offerings. A BOP is a comprehensive policy for any small business owner, and the insurance company will come with standard coverages. Check out the primary limits of protection for a BOP in South Dakota.
- General liability insurance: Pays for bodily injury or property damage claims where you and your employees are responsible.
- Business interruption: This will pay for regular business expenses when you are temporarily shut down due to a covered loss.
- Commercial property insurance: Pays for building, equipment, and inventory damage from a covered loss.
- Crime insurance: Pays for a claim involving forgery, fraud, or theft to your company.
What Is the Average Cost of a Business Owners Policy?
Your commercial insurance costs will vary depending on several items. Insurance companies look to your personal data and outside exposures when figuring your pricing. Here are some factors carriers look at to determine your BOP premium.
- Your business address
- How long you've been in business
- Your gross annual sales
- The type of industry you're in
- If you have any employees
- Business property details
- Prior claims
- Your insurance score
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Business Owners Policy vs. Commercial Package Policy
When you own a small business in South Dakota, the right coverage can be confusing. A BOP is different from a commercial package policy, and your operation will need one or the other. The difference between the primary policies you'll want to obtain are below.
- BOP: A BOP is plug and play. It has a pretty rigid template when it comes to coverage offerings. There is not much flexibility in the limits, and the endorsements are as-is. A BOP is truly for small business owners not exceeding a specific gross annual income.
- Commercial package policy: A commercial package policy or CPP is more robust. It is designed to tailor coverages exactly how your business needs them. A CPP is usually used for mid to large-sized companies. You can add and remove coverages as they pertain to your operation. It is a more flexible option for some business owners.
A CPP is usually for your mid to larger businesses, but this is not always the case. Every policy will be based on your industry type, property insured, and gross annual sales. A trained professional can help decipher with is better for your operation.
Business Owners Policy vs. General Liability
In South Dakota, there are roughly 86,550 small businesses in existence. When your operation takes a turn for the better, you'll need to be prepared with the right policy. General liability insurance may get you so far until a BOP is necessary for better protection. Take a look at the differences below.
- BOP: A BOP is going to provide coverage for your property, business income, and more. It will include general liability in addition to the many other coverage options.
- General liability: This policy is on its own. It will give you liability coverage for bodily injury, property damage, and libel or slander. Anything else will have to be added in a separate policy.
How to Find a South Dakota Independent Agent
In South Dakota, your small business needs the proper protection to be adequately insured. There are many policy types to choose from, and a trusted adviser is necessary. Business owners policy insurance can help cover your company from all angles.
An independent insurance agent has access to several carrier options so that you get the best coverage for an affordable price. They do the shopping at no cost to you, making it a no-brainer. Connect with a local expert on TrustedChoice.com for your custom quotes today.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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