No matter what kind of business you’re in, it’s never immune to common risks that even the most successful owners face. When it comes to threats like lost income, crime, and broken appliances, adequate protection is needed to keep profits from dipping into the red. Fortunately, a Tennessee independent insurance agent can help you find the right BOP insurance to protect your corporate brainchild. But first, here’s a closer look at this important coverage.

What Is BOP Insurance?

Commonly called a “BOP” for short, business owners policy insurance is a carefully crafted package of essential coverages for small business owners. BOPs come with a set of standard coverages such as liability and property protection, with a set of customized coverages added on that tailor to unique business niches. For example, BOPs are available for bakeries, salons, food trucks, bars, and just about any kind of business you can imagine.

What Does BOP Insurance Cover in Tennessee?

BOPs are set up to protect owners of small businesses in Tennessee by offering a pre-crafted selection of coverages needed by all businesses, and then topping them off with specific coverages needed by a certain type of business. So, depending on your unique business, your package will vary.

Here are the standard coverages offered in BOPs in Tennessee:

• Commercial general liability: This protects your business against property damage or bodily injury claims made by a third party.
• Property damage: This covers loss of or damage to your physical property, including your office space and often the inventory inside it from things like fires, storms, vandalism, etc. Coverage often extends to permanent changes you make to the interior of a building as well, such as installed light fixtures.
• Business income: A part of property insurance, this aspect covers the financial loss suffered while a business is closed due to fire damage or other disasters.

Once the standard coverages needed by Tennessee business owners across the board are taken care of, your business still needs additional protection tailored to your unique niche. The following are just a few examples of additional coverages offered by BOPs in Tennessee:

• Hired and non-owned auto liability: If your employees drive to perform company operations but you don’t have company vehicles, you might need this coverage.
• Crime coverage: This covers losses due to criminal activity such as theft or fraud. Coverage even applies to employees who steal from the company.
• Employee dishonesty coverage: This covers harm to the business caused by employees with questionable motives.
• Boiler & machinery coverage: Also known as "equipment insurance," this coverage applies to pieces of electrical equipment in the building (e.g., AC units and boilers) that break down due to power surges, etc. Property insurance may cover this stuff, but not always.
• Glass breakage coverage: This covers the glass windowpane of your business’s storefront, where applicable, from things like vandalism and car crashes.
• Druggist liability insurance: This covers liability exposures for professionals like pharmacists, for example, who have the potential to make very costly mistakes by giving someone the wrong prescription.

This list of available add-ons to a BOP is far from exhaustive. The more complex the business, the more types of coverage it’s likely to require. Working together with a Tennessee independent insurance agent is the best way to ensure your business has every aspect covered from all potential risks.

What Does BOP Insurance Not Cover in Tennessee?

Just like any other type of policy, BOP insurance comes with a list of specific covered perils and a list of non-covered perils. While specific exclusions will depend on your individual policy, two major perils not covered under BOP insurance are flood damage and earthquake damage. Special flood insurance and earth movement policies would be required to protect your business from damages and/or suspended operations caused by these types of disasters.

Flooding is certainly a concern in Tennessee, a state that’s prone to it. In order to protect your business from getting washed up, it’s a good idea to look into getting coverage, especially if your town is at an especially high risk for flooding or hurricanes. Flood insurance policies are only available through the National Flood Insurance Program, which is a part of FEMA. Your Tennessee independent insurance agent can help point you in the right direction.

Tennessee is also known to suffer from its fair share of earthquakes. Depending on the risk level of your specific town, you might also want to look into an earth movement policy to protect your business from getting literally shaken to the ground. Your Tennessee independent insurance agent can help set you up with the right policy.

Additionally, BOP insurance in Tennessee tends to exclude the following coverages:

• Professional liability
• Commercial/business auto
• Workers’ compensation
• Health/disability

When it comes to professional errors/negligence, company vehicles, and the safety of your employees, you’ll need to work with your Tennessee independent insurance agent to purchase separate policies to cover these important areas if they apply to your business.

Do I Need BOP Insurance in Tennessee?

The short answer is really yes, you do. You’ve worked hard to establish your business, so having the right protection is beyond important — it’s crucial. A BOP can help your business recover from tragedies that could potentially result in financial losses, and can help prevent bankruptcy following a particularly harsh disaster. BOP insurance packages provide coverage for many common risks to business owners in Tennessee.

BOP insurance packages in Tennessee typically provide coverage for the following perils:

• Fire and smoke
• Lightning
• Explosions
• Windstorms and hail
• Aircraft or vehicle damage
• Riot or civil commotion
• Vandalism
• Sprinkler leaks
• Building collapse
• Volcanic action
• Certain types of water damage

In addition to these specific covered perils, there are a handful of major reasons any business owner should get coverage. Here are the three main ways BOP insurance is helpful:

• Protection of your stuff: This includes coverage of your personal property, equipment, and your office building against things like theft, vandalism, and other damage.
• Protection from legal consequences: If any aspect of your business causes damage or bodily harm to a customer, you could be sued.
• Protection from lost revenue: In the event your services are suspended or shut down, your business could stand to lose a lot of profits.  

Your Tennessee independent insurance agent can help you review your BOP insurance to answer any remaining questions about your coverage. They’ll also be able to help you figure out whether you’ve got enough coverage or if you should purchase more.

How Much Does BOP Insurance Cost in Tennessee?

While it depends heavily on the specific business, what it basically comes down to is the simpler a business is, the cheaper the premium is since it’s less of a risk for the insurance company. So a small Tennessee music shop might pay only $350 or so per year, while a huge hotel in Nashville might pay $3,500 or more annually. It all depends on the size and risk level of the business. Your Tennessee independent insurance agent can help fill in the blanks.

Why Work with a Tennessee Independent Insurance Agent?

In order to get the protection you need and deserve, you’ll want to work with a trusted expert. And who could be better for the job than a local agent who shares your area code? Independent insurance agents act as your own personal insurance shoppers, offering you tons more options than one-policy companies. With just one call, they’ll hook you up with multiple quotes.

Tennessee independent insurance agents are armed with knowledge on what coverage is needed in your area, and they’ll get you set up with just enough of it — not too little, not too much. They’ll handle all the heavy lifting so you can rest assured you’ll be set up with the right coverage at the right price.

They’re not just there at the beginning either. If disaster strikes, your Tennessee agent will be there to help walk you through the claims process and make sure you’re getting the benefits you're entitled to. Now that’s thinking ahead.