A typical BOP policy is based on estimates

Traditionally, a small business or restaurant looking for business insurance would work with their agent to purchase a commercial multi-peril, or Business Owner’s Policy (BOP), based on estimated information.  

Generally, what key information is estimated? For restaurants or foodservice establishments, it’s:

• total annual sales or annual receipts,
• total liquor or alcohol sales as a percent of annual sales; and,
• total sales from delivery as a percent of annual sales.

This information is required during quoting as it plays a large part in determining the ultimate general liability component of the total premium the business pays.  Because the information is estimated, it is always subject to audit by the insurance carrier.  Premium audits:

• are inconvenient for the agent and business owner,
• can lead to the business paying more for their insurance at the end of the policy term; and,
• can lead to challenges with coverage renewals if the estimated information is deemed untruthful.

In an ever-evolving business environment, especially felt by restaurants coming out of the global pandemic, estimating 12 months’ worth of sales can be challenging.  We think it should be unnecessary.

The first Pay-As-You-Go BOP

Rainbow has introduced the first Business Owner’s Policy (BOP) to the market that is billed on a Pay-As-You-Go monthly basis. We achieve this by simply allowing a business to connect their POS or accounting system to Rainbow, so their general liability insurance premiums can be automatically priced, based on their monthly sales levels. We offer: 

• No upfront premium payments - you start paying your policy premiums at the end of the first month,
• No audits or back premiums; and,
• Peace of mind that the business only pays for the insurance that they need, and is covered for the full policy term, based on verified (not estimated) information. 

Pay for only the insurance you need

With a Rainbow Pay-As-You-Go BOP, the business has peace of mind that during economic downturns or periods of seasonality, their policy premium will decrease with lower sales levels.  Likewise, during periods of growth in total sales, the business can be confident that they are paying the exact policy premium required for the coverage they need.

Get a Rainbow Pay-As-You-Go BOP

If you are a small business owner in Texas or Arizona, talk to your insurance agent today about seeing a BOP quote from Rainbow Insurance, or simply click here.

Agents, get appointed now.

If you’re an agent and want to learn more about Rainbow Insurance and get appointed, click here.

As an appointed agent, you benefit from a flexible, easy-to-navigate digital platform that is backed by live underwriters and can quote and bind a policy online in 5 minutes or less. You can eliminate the tedium of online quoting with a streamlined submission process and instant issuance of policies and COIs. Plus, Rainbow offers competitive profit share plans, starting as low as $100k in gross written premium, for appointed agents that consistently write new lines of business using the platform.