A business owner’s policy (BOP) combines protection from all major property and liability risks in one package. This kind of policy consolidates everything into one simple, streamlined deal, perfect for small and mid-sized businesses. A BOP helps cover businesses from claims resulting from things like disasters, fire, theft, and bodily injury, among others.
Knowing what business owner’s policy coverages consist of can be helpful when searching for a new policy. Here’s a look at some important factors with BOP’s.
What A BOP Does NOT Cover
Before a packaged policy is purchased, it’s good to know what’s not covered. Although BOPs are great for bundling a lot of coverage into one, there are still some exclusions that need to be known first.
BOPs do not cover professional liability, auto insurance, worker’s compensation or health and disability insurance. Separate insurance policies will have to be purchased for professional services, vehicles, and employees.
What It Costs
A BOP is a unique policy, so the price tag that comes with it will be just as unique. The cost will vary depending on industry as well, and the specifics of a business’s operations and abilities will also play factors. After going through all policy factors some businesses may decide that it’s more cost effective to indeed not get coverage. Good rule of thumb: take inventory of everything first.
What Is Covered
Now that you know about what isn’t covered and the ambiguity of price it’s good to know what you can get out of a policy.
Bundling Property and Liability Coverage
The most essential protection for any business is general liability. This kind of coverage helps defend against claims of bodily injury involving non-employees, any medical fees from resulting injuries, and damage to property, even if it’s accidental. BOP insurance provides this basic coverage, but it also blends in property protection. This kind of protection covers equipment, merchandise, and the like for businesses. And it’s typically an affordable add-on.
Business Income Insurance
Coverage related to loss of income is something that can be added as well. A BOP will help a business against claims related to unexpected events. BOP insurance like this can help replace loss of income so continuing financial obligations are met including payments and payroll.
A BOP also covers equipment like business furniture and gear or supplies at multiple locations. Protecting inventory inside a warehouse is just as important as protecting office desks at headquarters. A BOP can help cover items that are rented or leased, not just owned by a business. This bundled coverage also helps protect property belonging to others, which helps f a business is liable for its loss or damage.
About Walker & Associates
If you’re in the market for a new insurance partner, do your homework to ensure a lucrative venture and positive relationship. Contact us online at Walker & Associates Insurance or by phone at (800) 213-7126 for your insurance needs. We can explain your coverage options and how much coverage will cost.