A BOP or a business owner policy, is an insurance package that offers both liability and property coverage all in one package. The total premium is normally much more budget friendly than buying liability and property coverage separately, which is why many small and medium sized businesses go for it. In addition to the liability and property coverage, this policy normally has business interruption coverage in it as well. This type of coverage offers reimbursement of lost revenue for up to a year if it is due to an insured property loss. What do you need to consider when looking at a BOP policy?
Understanding a BOP Policy
When you are a business owner, you want to be sure the money you spend on insurance is worth it. A BOP policy combines two major insurance types, along with the added benefit of business interruption insurance to save you money. The three coverages are:
•
Property insurance – This is a standard insurance policy that will cover the buildings and contents of your business. It is available in two different policy types, standard and special, which will offer more comprehensive coverage.
•
Liability insurance – This policy will cover your business’ liability if someone is harmed inside or outside of your business’ premise. This includes bodily injury or property damage that is due to installation errors, defective products (low coverage for product liability, would have to get a separate Product Liability policy for max coverage), and even cases of slander and libel.
•
Business interruption insurance – This type of policy will cover a loss of income that may occur due to a fire or other event that causes you to not be able to conduct business. In addition, it can cover the costs of doing business out of a temporary location.
The Importance of BOP Insurance
When you own a business, you are putting yourself at risk financially each day. From the products to the services to your employees to your vehicles and more, there is a lot that goes into a business that can become not only a liability issue, but can cost a lot of money to replace. Whether it is a fire in your warehouse or an accident with a work vehicle, if someone is injured or property is damaged, then you want to have insurance coverage to take care of the costs. Otherwise, you could be looking at having to pay for replacements or other financial responsibility out of your pocket, which could put your business in danger of bankruptcy or serve financial loss.
Opening a business may seem as simple as having something to offer for sale, but there is so much more that goes into it. A business owner insurance policy is
essential to keeping your investment protected and to ensure that you do not lose your business due to a lawsuit or a liability claim. By investigating your options and taking the time to get quotes, you can ensure that you get the right policy for your business and that you protect your investment. Find the right business owner's policy for your needs today!
