Business owners face a variety of unique risks and have a lot to consider when choosing insurance that fully protects their business. We can help take the guesswork out of the process.

Risk management often means expecting and planning for the unexpected. In order to maintain the safety of the employees and customers and ensure the viability of your business, you need to prepare for unforeseen disasters. These risks may include criminal activity, natural disasters or terrorist acts. Any one of these threats could be serious enough to devastate your business, but if you have plans in place you can work to minimize their impact.

As long-time providers of business insurance in New Jersey, the McMahon Insurance Commercial team recommends solutions that cover you from the many risks you take in order to serve your customers and support your family and those of your employees.

Offering policies at competitive prices from America’s top-rated underwriters, the McMahon team delivers custom business insurance nj solutions to meet the needs of businesses in a broad spectrum of industries.

Business insurance in New Jersey programs are managed, not merely purchased. We tailor both insurance programs and service distribution to meet the requirements of business owners with a careful eye on premium control.

We specialize in:

  • Business Owners Policies (BOP)
  • Workers’ Compensation
  • Executive Exposures
  • Directors & Officers
  • Commercial Flood
  • General Liability
  • Employment Practices Liability
  • Errors & Omissions
  • Professional Liability
  • Cyber Liability
  • Commercial Auto
  • Commercial Property
  • Group Benefits
  • OSHA training programs where applicable
  • Enterprise Risk Management
  • Business Interruption Insurance

How much business insurance do you need?

The amount of coverage that your business needs depends on a few factors such as: perceived risk, where you operate your business, and the type of products you manufacture. The only way to effectively protect the assets of your business is to carry adequate commercial insurance coverage. The McMahon team understands that your business needs to be protected, and we are here to help. Contact us to learn more about our risk management and insurance solutions.

The Benefits of a BOP

As a business owner, there is no shortage of things that you need to manage on a daily basis. Whether it’s supervising employees, connecting with new clients, or anything in between, there is only so much time in the day.

It’s nice to have peace of mind that you and your business are covered in the event that an insurance claim is brought against you.

A Business Owners Policy (BOP) is a good option for small and midsized businesses and it can offer you plenty of advantages including:

  • Broad coverage. BOPs cast a wide net of protection by bundling a number of different types of coverage into tone plan. In general, BOPs provide commercial property, general liability and business interruption coverage in one policy.
  • Cost savings. Every dollar counts for small and midsized businesses and BOPS can provide cost savings by combining the aforementioned policies so that you don’t have to go out and purchase each one separately.
  • While BOPs cover multiple types of risk for your business, you don’t need to worry about buying something that you don’t need. These policies can be tailored to fit your business’ needs with additional coverage for risks such as cyber liability, equipment breakdown, personal and advertising injury, and more.

Business owners have a lot to consider when choosing insurance that fully protects their business. One coverage option, a business owners policy (BOP), can take the guesswork out of the process. A BOP bundles several types of coverage in one package, similar to the way a homeowners policy works, but is designed for small and midsized businesses.

BOP Key Features 

A BOP generally combines the following types of coverage in one convenient bundle:

  • Commercial property insurance—Covers losses to property from common perils. It also covers office equipment, furniture, inventory, machinery, raw materials, computers and anything else that is vital to business operations.
  • General liability insurance—Covers a company’s legal responsibility for any harm it may cause to others, up to the policy limit. It also covers attorney fees and medical bills for anyone injured by the company.
  • Business interruption insurance—Reimburses for loss of income if a covered disaster interferes with the successful operation of the business.

Exclusions

Although a BOP is a convenient insurance option for small to midsized business owners, it does not cover professional liability, auto insurance and workers’ compensation. Workers’ life, health and disability coverage is also excluded. For those exclusions, business owners can purchase separate insurance policies. Other examples include the following:

  • Crime coverage—Although it is minimal, crime coverage can be added to a BOP to cover losses as a result of crime, such as employee dishonesty and computer fraud. Typical crime coverage ranges between $1,000 and $5,000.
  • Data breach coverage—This coverage is commonly added to BOPs to help remedy the following losses resulting from data breaches:
    • Notifying impacted individuals
    • Hiring crisis communication consultants
    • Defense and settlement costs from associated lawsuits
    • Replacement of lost income
    • Extortion and ransom payments
  • Errors and omissions (E&O) coverage—Businesses that provide services for a fee can be sued by customers who claim that they were harmed because the business failed to perform its job properly. E&O coverage pays for any judgment for which the insured is found legally liable, up to the policy limit. It also covers legal defense costs.

Ideal Candidates for a BOP

Businesses that have the following characteristics are ideal candidates for a BOP:

  • Operate in a physical location, whether home-based or outside the home
  • Have assets that can be stolen, including products, cash, furniture and digital property
  • Are at a high risk for lawsuits
  • Employ less than 100 employees and have less $5 million in sales

The following types of businesses frequently purchase BOPs to protect from losses not covered by general liability insurance:

  • Manufacturers
  • Religious organizations
  • Apartments
  • Restaurants
  • Technology consultants and solutions providers
  • Wholesalers
  • Retailers

Eligibility

Small to midsized businesses need to meet specific criteria to be eligible for a BOP. When determining eligibility, insurers consider factors that include the type of business, size of its primary location, class of business and revenue.

Premiums for BOP policies are based on eligibility factors, as well as financial stability, building construction, security features and fire hazards.

There’s no shortage of responsibilities or risks that come with being a business owner, so make sure that the product of all your hard work and long hours is protected. Contact us today to learn more about keeping your business safe with a BOP.

When purchasing business insurance in New Jersey, it is important to obtain the right amount. Contact McMahon Insurance Agency for guidance as to whether a BOP is a logical choice for your business.

We specialize in:

  • Business Owners Policies (BOP)
  • Workers’ Compensation
  • Executive Exposures
  • Directors & Officers
  • Commercial Flood
  • General Liability
  • Employment Practices Liability
  • Errors & Omissions
  • Professional Liability
  • Cyber Liability
  • Commercial Auto
  • Commercial Property
  • Group Benefits
  • OSHA training programs where applicable
  • Enterprise Risk Management
  • Business Interruption Insurance

How much coverage does your business need?

The amount of coverage that your business needs depends on a few factors such as: perceived risk, where you operate your business, and the type of products you manufacture. The only way to effectively protect the assets of your business is to carry adequate commercial insurance coverage. The McMahon team understands that your business needs to be protected, and we are here to help.

Contact McMahon Insurance Agency to learn more about our risk management and insurance solutions. An expert will help you find the perfect policy for your business.

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