The Benefits Of A BOP For Your Storage Business

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Many Americans have more possessions than they can keep in a house. As a result, many turn to self-storage businesses to store these items. So, the owners of the operations must insure their business to the highest degree. It helps guarantee operations remain secure in the event of unexpected problems. Most self-storage businesses can benefit from Business Owner’s Policies (BOPs). These policies include many of the common elements of protection most businesses need.

Self-storage services can start out with BOPs, and at times enhance that coverage. Let’s look at how to approach insuring yourself.

What’s A BOP?

Business insurance doesn’t usually come in just one policy. Indeed, most business owners should carry several policies within their own portfolio. However, by investing in a BOP, self-storage owners might be able to reduce some of that policy load.

BOPs combine several common elements of commercial insurance into one package. That can often save you money on premiums, deductibles, and other standard policy costs. Within coverage, most business owners can find:

  • Property Coverage: In the event of damage to the office, fences, or units, this coverage can help you pay for repairs. Covered claims can include things like storm, fire or vandalism damage.
  • Liability Coverage: You likely are not liable for damage to the contents of clients’ storage lockers. However, that might not stop them from suing you anyway. Coverage can protect the business against claims of injuries, property damage and some personal injuries claimed by clients.
  • Interruption Insurance: If you have to close for repairs, coverage can supplement your ordinary income. It might help you pay salaries, utility costs and other standard wages.

The savvy self-storage unit owner can see the benefits of investing in a BOP. However, when you do get one, you’ll need to tailor it to meet the needs of your industry. Limits, exclusions and other parameters should all account for your unique operating risks.

And once you have coverage, you’ll likely need to augment that protection with extra policies. Some of these might include:

  • Cyber Liability Coverage to insure data breaches or cyber theft that compromises customer privacy.
  • Flood Insurance to cover water damage. You likely do not have flood coverage standard on your property insurance.
  • Equipment Breakdown Insurance to insure breakdowns to your essential systems. It particularly helps if you own a climate-controlled system.

The insurance your self-storage business needs depends on quite a few unique characteristics. Talk to your Southwest Commercial Insurance agent about the coverage appropriate for your operation.

FAQ’s About The Benefits Of A BOP For Your Storage Business

Why do storage businesses need a BOP?

Storage businesses face a number of risks, including property damage, theft, and liability claims. A BOP can provide comprehensive coverage for these risks at an affordable price.

What does a BOP cover?

A BOP typically covers property damage, theft, liability claims, and business interruption. It may also include additional coverage options, such as cyber liability insurance.

How much does a BOP cost?

The cost of a BOP varies depending on a number of factors, including the size of the business, the location, and the coverage options selected. However, BOPs are generally more affordable than purchasing separate liability and property insurance policies.

Can I customize my BOP coverage?

Yes, most insurance providers offer customizable BOP packages that allow you to select the coverage options that best fit your business’s needs.

How do I choose the right BOP for my storage business?

When selecting a BOP, it’s important to consider your business’s specific risks and needs. Working with a knowledgeable insurance agent can help you identify the appropriate coverage options.

What happens if I don’t have a BOP and something goes wrong?

Without adequate insurance coverage, your business could be held liable for damages or losses resulting from property damage, theft, or liability claims. This could result in costly legal fees and financial damages.

Is a BOP required by law for storage businesses?

No, a BOP is not typically required by law for storage businesses. However, it is highly recommended to protect your business from potential risks and losses.

Can I add additional coverage options to my BOP later on?

Yes, most insurance providers allow you to add or modify coverage options to your BOP as your business needs change.

How do I file a claim under my BOP?

If you experience a covered loss or damage, you should contact your insurance provider as soon as possible to file a claim. Your insurance agent can guide you through the claims process and help you receive the compensation you’re entitled to.

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