Today’s businesses require both property and liability coverage to avoid uninsured losses. Fortunately, those small and medium-sized business that don’t provide professional services can obtain both with a Business Owner’s Policy (BOP).
A BOP provides both property and liability coverage in one package, so you can avoid purchasing separate policies. With packaged coverage, you benefit from the lower cost and avoid gaps in coverage.
Your BOP provides protection for buildings and contents, as well as for others’ personal property brought into your facility. BOPs also cover fire and theft hazards; however, certain occurrences such as floods and earthquakes require separate coverage.
The BOP premium is based on your business’s location, financial stability, the type of construction of your business premises, fire protection, and other factors. Each business has unique liability risks; with a BOP policy, you can choose how much liability insurance you need. Liability coverage provides a defense and pays damages if you are sued for business reasons, subject to certain exclusions: If a customer falls on your premises, the injury would be covered by the BOP; if an employee is injured at work, it wouldn’t be.
The BOP also provides limited business interruption coverage, as well as “personal injury” liability – such things as slander suits against you for allegedly using copyrighted material. Employee theft may also be covered, while other coverages, such as mechanical breakdown, are available for additional premiums.
If you’re interested in discussing Business Owners’ Policies, contact your advisor, who is experienced in helping businesses like yours protect themselves against loss.