A Business Owners Policy or BOP insurance lets business owners focus on the expected challenges and rewards of running a small business. Business owners policies cover property and liability losses from unexpected risks such as smoke damage to merchandise or liability from an injured customer. In addition, coverage on business income can help a distressed business continue until normal operations resume. Could your business cover the costs of a catastrophic loss? A BOP is a smart way to minimize risks and protect your small business.
Business Owners Policies are designed for medium to small businesses. The ideal business for BOP insurance is a one location operation with common, non-specialized risks.Typically, coverage for buildings may not exceed 25,000 square feet in total floor area and annual gross sales must be less than $3 million. A BOP may be a good solution for the following businesses:
- Convenience stores
- Delis and coffee shops
- Motels and hotels
- Wholesale suppliers
- Dry cleaners
- Retail clothing stores
- Offices
- Self storage facilities
Business Owners Insurance – Coverage
A BOP is a package of coverage including property and liability insurance. The exact items and situations that are covered will vary by insurance company and policy. Therefore, consult a small business insurance agent and thoroughly read the policy before purchasing. Business owners insurance does not always include other important coverage like long term disability and workers compensation. It is good practice to ask about these coverage as riders instead of just purchasing them separately. With that in mind, business owners insurance can usually be broken down into these parts:
Buildings And Business Personal Property Coverage
- Completed additions
- Permanently installed fixtures and equipment
- Property owned and used for business
- Customer’s property under the business’ care
Liability Coverage
- Bodily injury
- Property damage
- Personal injury
- Advertising injury
Additional And Optional Coverages
- Debris removal
- Collapse
- Business income
- Forgery and alterations
- Electronic data
- Employee dishonesty
Business Owners Insurance Quote And Other Considerations
Business owners should compare quotes to lower business insurance costs. Business Owners Policy is a small business insurance package that helps protect against common, non-specific risk. Any unusual or any highly exposed activity, like livery or trucking services, should be addressed by a special insurance policy. Make sure you give a lot of thought to the types of exposures that confront your business before you consider the general coverage provided by a BOP.