Important Business Owner Policy Terms to Help You Recover Loss of Business Income
Business Owner Policy or BOP, is a corporate insurance policy. It is designed in such a way that it combines the general liability insurance with several additional policies. This insurance policy is better suited to suit the interests of a small business . Because, the small business owners often require insurance policies designed for specific type of market or business.
Customization of BOP
A business owner policy can be customized to suit the needs of a business owner. They can pick and choose which policies to add into the BOP. This way, they will get coverage for many things with minimal documentation and expenditure of resources. If all such insurance packages were to be purchased separately, they would become a lot more expensive. However, BOP combines them in a concise manner into one proper policy. This reduces the charges to a great degree .
BOP is an All-Encompassing Policy
A small business owner does not need to purchase separate policies for every little coverage. Such as, there need not be separate purchases for liability, property, auto etc. You can Buy only one business owner policy which encompasses them all.
Liability Insurance for Small Business Owners
Every small business owner recognizes the great value in purchasing a liability insurance. However, not all of them are knowledgeable enough to actually profit from such policies to their full potential. Many wrongfully think that they are getting coverage for their buildings and their contents through a general liability insurance. Yet, they fail to realize that a general liability insurance provides coverage to the others who have suffered losses. It does not cover the business itself. For coverage of such things, a business owner needs to buy a whole range of other specific policies. OR they can just buy a business owner policy.
Business Owner Policy (BOP) vs. Commercial Package Policy (CPP)
As stated above, a business owner policy is specifically designed with a small business in mind. That is why it is mainly marketed towards small business owners as well. It is easy to write and has straightforward terms. On the other hand, a commercial package policy is not that straightforward. CPP is offered to client as a fully customizable policy. It is customizable to the extent that each single line is individually written into the policy. A BOP has some additional lines of coverage which have been built into it automatically. It has some predefined limits of coverage. In simple words, CPP offers a high degree of flexibility, and BOP offers a simple and robust insurance program.
Common Coverages in Business Owner Policy
There are two policies which are generally added to a BOP. These are the general liability insurance and property insurance. General liability covers any injuries, losses one sustains due to your business, product or services. Property insurance covers buildings, their contents, inventory and personal property. However, additional coverages may also be included in the BOP package.
Additional Coverages Included in a Business Owner Policy
Following are some of the additional coverages which can be included in a BOP;
- Buildings and Fixtures
- Business Interruption Insurance
- Business / Personal Property Insurance
- Clean-up and Debris Removal Coverage
- Coverage for Water or Pollutants
- Commercial Crime Insurance
- Computer Failure Coverage
- Data Breach Insurance
- Employment Practices Liability
- Hired and Non-Owned Auto Insurance
- Mechanical Failure Coverage
- Money and Securities
- Outdoor Signs and Posts Coverage
Get Access to BOP for Your Small Business
SG Financial Inc. is one the best insurance providers in Plano, Texas area. Protect your business through an extensive business owner policy. Buy just one policy to protect all your corporate interests.