The Business Owners Policy, otherwise known as BOP, may well be the key to protecting any small business. Made up of a few forms of coverage that each are usually acquired on their own, the bundled plan for small commercial enterprises offers business discounted premiums as they gain from better insurance coverage.
What does the standard Business Owners Policy provide? This commercial policy usually consists of:
• General Liability Coverage
Commercial liability insurance helps a business owner if a customer is injured at the property and sues for his medical care. Coverage extends to hospital and doctor costs, as well as defense costs. It can also benefit the business if there is ‘advertising injury’ related to claims such as copyright infringement, libel and defamation.
• Property Coverage
Commercial property insurance is often also referred to as named-peril insurance, open-peril insurance or special insurance. This can cover the owner in the event there are property damages in regard to a rented space or premises that the business owner actually owns.
• Business Interruption Coverage
Business Interruption insurance helps the insured when rain, wind or snow storms, or cyber hacking and/or other universal happenings occur and disrupt the regular running of the business. The insurance will pay for business loss or put up financing for using another transitory property while running the business until the permanent site has been repaired.
The great advantage to owning a Business Owners Policy is that the standard coverage can be tailored to your individual needs as a small business owner. After an assessment with an experienced independent agent, you will be guided to determining what further types of coverage suit your industry, size of operation and earnings and would benefit you and your company by being included in the policy. What’s more, your agent can schedule regular times for reevaluation if your needs have changed and add or subtract various forms of coverage as per the assessment so that you have the protection when you genuinely require it.
Take a look at this scenario to understand what a related customized policy can mean.
A one-man business operation grew until it included a few more employees. The man’s insurance specialist discussed the growth with the business owner and together they determined that a workers comp policy, as well as a disability insurance should be added to the standard offerings. This satisfied the government requirements and gave the business owner the additional protection he needed in the event an employee would be injured on the job.
For more on the topic, be sure to speak with an experienced independent insurance agent.