As a business owner, take care in estimating your annual business insurance property coverage. Estimating property coverage for your BOP plan isn't hard. That said, it can get a little complicated when your inventory fluctuates.
Generally, your BOP will protect you from most claims. It will also keep your costs low if you're buying new policies. If you have inventory, though, your plan might not offer enough coverage.
What Property Does Your BOP Cover?
A BOP will protect most of your business' assets. This includes your building. It also covers:
- Your equipment
- Your inventory
- Your furnishings
These items, often, have a set value. This said, your inventory's value will usually depreciate. Even if your property isn't as valuable, your BOP plan will likely still protect you.
The Upper Limit
Your BOP coverage has an upper limit. This upper limit is your plan's maximum coverage amount. If you face a significant loss, this limit will determine how much protection you can get. You can use this limit when estimating how much coverage you have available.
You can also take note of specific dollar amounts assigned to each item. Your policy lists these amounts in the event you face a significant loss. Are these amounts enough? If they're not, you might want more coverage.
Can You Boost Your Property Coverage?
When buying a business insurance policy, you should plan ahead. You might find your BOP are too low. If they are, talk to your agent. Your policy needs to reflect your property's actual value — including your inventory. If you're like most businesses, your inventory probably changes frequently.
So, what can you do? You can determine what your business' highest inventory value is. Look at your business' last 12 months to get an idea of this. Then, add the value of every asset your business owns, including the building, furnishings, equipment and even computers. Your policy needs to cover this amount.
Get The Best Coverage Possible
Most BOP premium minimums are between $350 and $500, but these standard policies might not cover all your property. If you can cover all of your assets, you’ll be able to protect your business in the long run. If assist you in finding a comprehensive, affordable and safe business insurance policy.
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