From the Front Lines: BOPs

How did you get started at your agency?

I started in the insurance industry in 1989 and worked for three insurance companies over a 25-year period. I helped many agencies and agency producers sell commercial insurance, so I figured I should do it myself. I made the move this year to the agency side. My background involving loss control and marketing has really helped me succeed as a producer.

Why BOPs?

BOPs started out as small, basic policies for a limited number of businesses. But over the years, insurance carriers have expanded eligibility, coverage, and limits. I find them great to use whenever possible since the insurance companies usually have broadening endorsements, which pick up unusual coverage and broaden limits. It makes it a lot easier than rating and writing a commercial package policy, where each special coverage a client may need must be endorsed onto the policy. Many times, BOPs are much more cost-effective for the client, and that helps during the sales process.

Biggest BOP changes?

Broadened eligibility requirements and higher limits of acceptable coverage, sales, and receipts. Also, larger buildings are now eligible.

Biggest BOP challenges?

Comparing one company against another for a client. Companies all have a unique coverage endorsement that provides coverage or higher limits compared to another company. You have to completely understand what your client is doing in order to recommend the proper company and policy.

What do you tell a first-time BOP client?

I explain it this way: A BOP is like when you purchase an automobile and you want a certain option, so you include a “package,” which includes the option you want but also other options you don’t really need. A BOP is much like that since it includes options that are important to one business but unimportant to another. However, in the end, it is the most cost-effective way to secure the coverage.

BOP advice for a fellow agent?

Spend time with the client to understand their business. If a client’s business is nearby, visit. Review their website to get an understanding of what they do. Remember that one policy does not fit all. BOPs can be customized to each client’s individual needs.

Favorite success story?

BOPs proved what a valuable product they were after Hurricane Sandy. Many customers that just had package policies didn’t have coverage for their loss of income and food spoilage exposure as a result of off-premises power interruption. One of our clients was very happy that her loss was covered under her BOP policy because of a supplemental endorsement, which we add on all food service businesses.

Future of BOPs?

I see the BOP market expanding since it enables companies to cut overhead and be more cost-effective.