What is a Business Owner Policy?
A business owner policy (BOP) combines protection for all major property and liability risks in one insurance package. Essentially this policy puts together the basic coverages required by a company in a bundle package. Typically sold at a premium, this type of policy is less than the total cost of the individual coverages.
What is a Business Owner Policy?
A business owner policy (BOP) combines protection for all major property and liability risks in one insurance package. Essentially this policy puts together the basic coverages required by a company in a bundle package. Typically sold at a premium, this type of policy is less than the total cost of the individual coverages.
Understanding Business Owner Policies
A business owner’s policy offers a variety of different insurance coverages all rolled up into one. These tend to be targeted towards small and mid-size businesses. Usually business insurances include property, business interruption and liability insurance. Most policies will require businesses to meet certain conditions to qualify.
The property insurance of a BOP usually provides coverage only for damage caused by events specifically listed in the policy. This is usually referred to as named-peril coverage. Properties covered by a BOP are typically buildings that are owned or rented by the company. It will also cover any business owned items that are under control of the company and within the vicinity of the property.
Business interruption insurance that is included in a BOP covers the loss of income resulting from a catastrophe. Usually, it has to have an impact that disrupts the operation of the company. This may also include covering the cost for operating out of a temporary location.
The liability protection of a BOP covers the legal responsibility for damages done to others that the company caused. This damage results from normal business operations that may have ended in an injury or property damage due to defective products or errors in the services provided.
Understanding Business Owner Policies
A business owner’s policy offers a variety of different insurance coverages all rolled up into one. These tend to be targeted towards small and mid-size businesses. Usually business insurances include property, business interruption and liability insurance. Most policies will require businesses to meet certain conditions to qualify.
The property insurance of a BOP usually provides coverage only for damage caused by events specifically listed in the policy. This is usually referred to as named-peril coverage. Properties covered by a BOP are typically buildings that are owned or rented by the company. It will also cover any business owned items that are under control of the company and within the vicinity of the property.
Business interruption insurance that is included in a BOP covers the loss of income resulting from a catastrophe. Usually, it has to have an impact that disrupts the operation of the company. This may also include covering the cost for operating out of a temporary location.
The liability protection of a BOP covers the legal responsibility for damages done to others that the company caused. This damage results from normal business operations that may have ended in an injury or property damage due to defective products or errors in the services provided.
Special Considerations
Some other unique coverages might fall under a business owner policy as well. These typically include crime insurance, vehicle coverage and flood insurance. These special considerations usually depend on the business’ situation. The business owner and insurance company will make adjustments to these additional coverage options if needed. The coverage might include certain crimes, spoilage of merchandise, computer equipment, mechanical breakdown, forgery, and fidelity bond. However, the coverage limits on these tends to be pretty low. A BOP usually won’t cover professional liability, worker’s compensation, health or disability insurance. These would require separate policies.
Special Considerations
Some other unique coverages might fall under a business owner policy as well. These typically include crime insurance, vehicle coverage and flood insurance. These special considerations usually depend on the business’ situation. The business owner and insurance company will make adjustments to these additional coverage options if needed. The coverage might include certain crimes, spoilage of merchandise, computer equipment, mechanical breakdown, forgery, and fidelity bond. However, the coverage limits on these tends to be pretty low. A BOP usually won’t cover professional liability, worker’s compensation, health or disability insurance. These would require separate policies.
Requirements for a BOP
Not all companies will meet the requirements for a business owner’s policy. The requirements to be eligible will vary among different insurance providers. These requirements could include the location of the business, the size of the business, revenue, and the industry of the business.
Requirements for a BOP
Not all companies will meet the requirements for a business owner’s policy. The requirements to be eligible will vary among different insurance providers. These requirements could include the location of the business, the size of the business, revenue, and the industry of the business.
