From lawsuits and data leaks to fires and weather damage, businesses are constantly facing a multitude of risks. Although you can’t guarantee that your company won’t suffer a loss, you can protect it with the right business insurance.
However, because business owners face such a wide array of risks, selecting the right insurance coverage can get very complex very quickly. Bundling your policies can streamline the process while providing thorough, cost-effective coverage.
How Bundling Works
When you bundle insurance coverage, it means that you are purchasing multiple policies from a single insurance company. You often receive a significant discount for doing this. Instead of paying separately for each policy, you can also consolidate your premiums into a single payment.
Common Business Insurance Bundles
Most business owners will need to purchase several different types of insurance, so in many cases, bundling their policies makes sense. One of the best-known business insurance bundles is the business owners policy (BOP).
Business owners policies are popular with small and medium businesses, and they typically bundle three kinds of coverage:
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General liability insurance
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Property insurance (for both buildings and their contents)
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Business interruption insurance
The standard BOP bundle comes with three types of insurance that apply to most businesses. However, many business owners add policies to the bundle as needed. For example, if your small business has company vehicles, you might add a commercial auto insurance policy to your bundle.
Why Bundle Your Business Insurance Coverage?
Bundling your business insurance has several advantages over purchasing separate policies:
You’ll Likely Get a Discount
This is one of the best-known benefits of bundling policies, and it’s not unique to business insurance. Many carriers offer discounts to customers who want to bundle their home and auto insurance, too.
The exact discount you get for bundling depends on the carrier, but generally, it can range from 5% to 20% or more. The longer you keep your bundled policies, the more money your business saves.
It Reduces the Risk of Coverage Gaps or Overlap
In most cases, carriers that offer business insurance bundles design their policies to work seamlessly together. When you buy individual policies, it’s easy to accidentally purchase redundant coverage or leave gaps.
Redundant coverage may not pose the same degree of risk as coverage gaps, but that doesn’t mean it isn’t damaging to your company. Over time, overlapping coverage can needlessly cost you thousands of dollars.
Policy Management Becomes Simpler
When you bundle your business insurance, you don’t just save money. You’ll likely find that bundling saves you time, effort, and frustration, too. With a bundle, you have a single point of contact if you need to ask a question or file a claim.
Even if you never have to file an insurance claim, an insurance bundle makes routine policy management refreshingly simple. All of your policies will have the same renewal date, and instead of trying to track when multiple premiums are due, you just need to make one payment to the same company each month.
Need Help Choosing Business Insurance?
Bundling is a time-tested way to save money on insurance without sacrificing coverage quality. While purchasing a bundle is almost always less expensive than buying individual policies, you should still compare quotes to verify before making your decision.
Whether you’re bundling or not, it’s always useful to have some guidance when shopping for business insurance. At Hulett Insurance, we’ve been helping Texas business owners protect their companies since 1995, and we hope to help you, too. Call us or get in touch online to get started with a free quote!
