Starting a business is exciting, but it also comes with risks. Between managing finances, building a brand, and attracting customers, insurance might not be at the top of your to-do list. But skipping coverage early on could be a costly mistake.
A Business Owner Policy (BOP) is one of the smartest investments a startup can make. It bundles essential coverage — property insurance, general liability, and business interruption insurance — into one affordable package. If you’re a new business owner, here’s why you should secure a BOP early rather than waiting until you think you need it.
Why Startups Need a Business Owner Policy
1). You’re More Vulnerable Than You Think
Many startups assume they don’t need insurance because they’re small or just getting started. But that’s exactly when your business is at its most vulnerable. One lawsuit, a fire, or a break-in could wipe out everything you’ve worked for.
A BOP protects your business assets, helping you recover from unexpected setbacks without draining your finances.
2). Property Insurance Covers More Than Just Buildings
Think your home-based business or rented office space means you don’t need property insurance? Think again. Property insurance within a BOP covers not just buildings, but also equipment, inventory, furniture, and even digital assets in some cases.
If your startup relies on expensive laptops, tools, or inventory, a BOP ensures you’re covered if disaster strikes.
3). General Liability Shields You from Costly Lawsuits
Even the most careful business owners can’t prevent every accident or customer complaint. A single lawsuit — whether it’s from a customer slipping in your store or a product defect claim — could cost thousands in legal fees.
A BOP includes general liability insurance, which covers legal costs, settlements, and medical expenses, saving you from a financial nightmare.
4). Business Interruption Insurance Keeps You Afloat
What if a fire or storm forced you to close your doors for weeks? Could your startup survive? Many small businesses fail within months of an unexpected closure simply because they don’t have a financial backup plan.
With business interruption insurance, your BOP helps cover lost income and operating expenses while you get back on your feet.
5). BOPs Are Cost-Effective for Startups
One of the biggest advantages of a BOP for startups is its affordability. Instead of purchasing separate policies for liability, property, and business interruption coverage, a BOP bundles them together at a lower cost.
It’s a smart, cost-effective way to protect your business without breaking your budget.
Protect Your Startup from Day One
As a startup, you’re focused on growth, innovation, and success — not worst-case scenarios. But protecting your business early with a Business Owner Policy ensures you’re ready for anything.
At Avalue Insurance, we specialize in customized BOP solutions for startups and small businesses. Let’s secure your future today. Contact us to get a personalized quote! Give us a call at 303-773-3332, email us at info@avalueinsurance.com, or request a quote right here online!
