The Business Owners Policy (BOP) is designed to provide a package of coverages for businesses that need General Liability Insurance and Commercial Property Insurance. It is designed to offer coverage for small to medium size businesses and can accommodate almost any type of business or organization.
From main street retail shops to contractors, the BOP is the policy of choice because of the many coverage options that can be packaged in one policy. One of the key components of the BOP is the Business Interruption coverage that provides reimbursement to the business owner for expenses and lost profits if the business is closed or has to relocate due to a covered peril such as fire or windstorm.
Even though the BOP provides comprehensive coverage for most businesses, there are many endorsements (add-ons) that can be added to accommodate many types of business operations and meet your individual needs:
• Attached or Freestanding signs
• Contractual Penalties
• Worldwide Laptop Coverage
• Money & Securities Off-premise
• Personal Property of Others
• Outdoor Property
• Key Replacement and Locksmith
• Ordinance or Law
• Cyber Liability
• Employee Dishonesty
• Fine Arts
• Hired Auto & Non-owned Auto
• Equipment Breakdown
Your business is the result of capital that you risked and many hours of strategic planning and in most cases, significant funds are borrowed for the startup. It makes no sense to purchase a cookie-cutter insurance policy to protect your business when a policy can be tailored to meet your individual needs. Since the BOP offers a broad range of coverages to protect you from a broad range of risks, it is the best policy selection if you own a qualifying business.
When designing your company’s business owner’s policy, it is important to keep in mind the limits of liability that are available to you. Since the difference in price between $500,000 and $1 million in coverage is minimal, it makes more sense to select the highest limit available. If you feel the $1 million limit is inadequate, ask your agent or broker about purchasing a commercial umbrella to increase the limit to a level of comfort. The property risk for a business owner can easily be quantified by the value of the property at risk, but the liability risk cannot be quantified and, therefore, the higher the limit, the better.
As a business owner or manager, your first and most important step should be to contact an experienced agent or broker and discuss the risks that are specific to your business and your nee