You may know that with personal insurance, bundling is a key term. It is one insurance companies like to use to reference savings. The same can apply to business insurance. If you are hoping to reduce your risks and save money, bundling your coverage can do that. Here is how some companies reduce
their costs through this method.
What Really Is Bundling?
In most situations, the term applies just to the process of purchasing more than one insurance policy from a single insurance provider. It works much like any other service in which buying more from one product reduces the overall cost. With business insurance, it can be very effective. Here are some examples.
Business Owner Policy
A simple reason to buy a Business Owner Policy, or BOP, is because it combines the basic coverage most companies need into a single policy. This includes property damage for your assets and general liability insurance for your risks. It’s a basic policy, and may not be enough for all companies, but it does often offer a lower price than buying both policies separately.
This isn’t an official insurance bundle the way some bundles work, such as if you buy a homeowners and auto policy from the same company. However, it does combine multiple types of coverage in beneficial ways.
What Else Should You Add?
The key to a BOP and any other business insurance is that it needs to match the risks your company faces. You can add onto your BOP or purchase several individual policies to get this same type of effect. The more you buy through a single insurer, the better your rates may be overall.
Most companies may need to consider policies such as the following in addition to a BOP or basic coverage.
- Workers’ compensation insurance tends to be essential for all companies with employees. It protects against employee injury or illness related to the work they do for you.
- Professional liability insurance extends your liability coverage. It helps protect companies that typically provide advice or expert consulting to their clients.
- Cyber liability insurance helps minimize the loss of personal information of customers and business proprietary information through internet-related losses.
- Commercial auto insurance can help minimize damage and cost losses to any vehicles the company owns and uses.
Keep in mind, in some cases, you can add these policies directly into a BOP, but in others, you must buy entirely separate policies. You can still often buy these policies from the same insurer, though.
These are just a handful of examples. In many cases, the more you buy from one provider, the lower the price. Yet, your goal is to buy just the business insurance you need. When you do so and bundle it, it could save you money in the long term.
Also Read: Fifteen Essential Type of Business Insurance