The Most Important To Know About Business Owners Policy
Safety is important for everyone. We like to feel safe against all probable threats. Insurance services are an excellent way of ensuring that feeling of safety within us. While personal and familial safety is important, it is also equally important for business. Therefore, a Business Owners Policy is one of the most essential forms of insurance policies for a business.
What Is a Business Owners Policy?
A Business Owners Policy (BOP) is an insurance policy which provides a combined protection to a business. It provides coverage against all major property and liability risks in a single and convenient insurance package. Consequently, BOP collectively provides the basic coverages required by a businessowner in a single bundle.
Cost of Business Owners Policy
The BOP is such a diverse and useful policy that it combines many different facets of protection in it. There are many Benefits of Business Owners Policy. People, who are familiar with the workings of insurance policies, become amazed at the sheer scope of its range. That is why they mistakenly assume such a policy would cost very high. They look for deception when they hear the actual costs.
However, the truth is, a Business Owners Policy Services actually do cost very little. It combines many different policies into a single package, but it does not accumulate their individual costs. The total cost is far less than what the policies would have cost individually. Our advice is, ‘do not look a gift horse in the mouth’. Truly, it really is as good as it sounds.
Understanding Business Owner Policies
A BOP offers many different insurance policies that a business owner might require. BOP provides a nice little bundle of these policies. Generally, small to mid-size business profit from this policy. BOP can include many different policies, but the most common among them are;
- Property Insurance
- Business Interruption Insurance
- Liability Insurance
Most BOP policies require businesses to meet certain eligibility criteria to qualify. As a result, this policy is not given out without fulfilling certain eligibility conditions.
Property Insurance is an important part of most Business Owners Policies. It is available as a ‘named-peril’ coverage. Therefore, it only provides coverage for the damages caused by events which have been specifically listed with the policy contract. The typical risks covered by property insurance section of BOP are the damages caused by;
- Weather etc.
Some BOP policies offer ‘open-peril’ coverage. It means, the policy will cover all damage to the property regardless of the reason. This kind of policy gets expensive accordingly.
Many forms of properties can be covered by BOP, such as;
- Additions in progress
- Outdoor fixtures etc.
The BOP even provides coverage to the business-owned items owned by a third party. It does not matter if said item was temporarily in the control of said business organization. Any removable property can also qualify for coverage. However, this property must be kept within close proximity to business property. The typical distance limit is 100 feet perimeter.
Business Interruption Insurance in BOP
A business interruption insurance helps the insured businesses help recover the loss of income. This loss can occur from an accident, or catastrophe which causes a major disruption in business operations. The Business Owners Policy Services typically includes this incredibly important form of protection. It can even cover the extra expenses for operating the business out of temporary locations due to the disruption.
Liability Insurance in BOP
No business can properly function without a liability insurance. Otherwise, the very first lawsuit would completely cripple them. The Business Owners Policy always includes a liability clause. The insured individual or organization will receive proper coverage in case of a legal action by harmed parties. Not every business is the same. As a result, every business carried different scope of potential harm. The faulty services or products might cause bodily injuries to the users. It might even inflict property damage, or a countless other thing. Consequently, the fallout from such damages will be covered by the BOP.
Special Considerations in a Business Owners Policy
A Business Owners Policy is incredibly accommodating. Therefore, you can choose which sub-insurance services to include in the package, and which ones to exclude. Crime insurance, commercial auto coverage, and even flood insurance, are sometimes included in a BOP. However, many minor coverages are often overlooked. They can be included in a BOP contract. Such as;
- Coverage against certain crimes
- spoilage of merchandise
- computer equipment
- mechanical breakdown
- fidelity bond etc.
Exclusions in a BOP
However, the coverage limits for these inclusions is generally low. A BOP does not cover professional liability, worker’s compensation, health, or disability insurance. Consequently, if you want these protections, you should purchase them as separate policies.
Requirements for a Business Owners Policy
Not every business qualifies for BOP. Because, every provides has their own criteria for eligibility. As a result, the insurance carriers do not provide a BOP easily. The business premises, size of premises, annual revenue and type of business are three of the qualifying characteristics. Generally, businesses eligible for BOPs include retail stores, apartment buildings, small restaurants, and office-based businesses.
Read More Articles About Business Owners Policy;1) Important Business Owner Policy Terms to Help You Recover Loss of Business Income
2) How to Choose the Right Business Owner Policy?
Protect Your Corporate Interests Through the Best Business Owners Policy in Texas
It is paramount for every small or mid-sized business to acquire a BOP policy. SG Financial Inc. can offer you the Best Business Owners Policy in Texas. The policy is customizable. Therefore, the client can choose what to include or exclude from the policy. We offer this policy at cheaper rates than the market.