What is a Business Owner’s Policy?
As a new business owner, you want to know how to protect yourself and your business. Your list of concerns may involve finance, marketing, distribution, etc. Another important item on that list may be business insurance. There are many types of insurance policies out there to consider, but as an entrepreneur you may want to consider purchasing a business owner’s policy, also known as a BOP in English. A BOP is used in combination with other important types of commercial insurance policies that business owners should consider having. It can help cover losses involving damage to your business building, or client injuries caused by the operation of your business. Continue to read and learn more about how a business owner’s policies can benefit you.
What coverages are included in a business owner’s policy (BOP)?
Two of the basic commercial policies included in a BOP are commercial general liability and commercial property insurance. Every coverage has a limit, so when you speak with your agent, make sure you provide all the details of your business operations so that nothing goes ignored. Here are some details about these types of coverages:
Commercial general liability is coverage that can help to pay a claim made against your business which can include claims against libel, slander, and negligence. It can also be used to help pay for any damage caused to someone else’s property due to the operations of your business. In the case where a client is injured due to the operations of your business, this type of policy can also help to pay for any medical bills and lost wages. If ever you or one of your employees accidentally damages a client’s wall while completing a job, then the commercial general liability portion of your BOP can help pay for those repairs.
Commercial property insurance helps pay for damage done to your owned business property or leased business property. This includes any equipment used in the operations of your business, your inventory, and even your business furniture. If your business is damaged due to fire, theft, or vandalism, this is the coverage that can be used to help pay for the repairs so that you can get back to work.
There are other coverages that you can choose from depending on your business needs. It is important to have a conversation with your agent so that your policy can be customized specifically to the type of business that you run. If you run a business that is considered high-risk, legal fees may be on your list of concerns. A BOP can help pay for those under a covered loss.
Is a business owner’s policy only for brick-and-mortar businesses?
A business owner’s policy is utilized by those entrepreneurs who run their business from a physical and stationary building. Unfortunate things happen all the time and maybe your building is damaged by a run-away vehicle, or your building is vandalized overnight, and you need it repaired fast. A BOP is the policy that helps pay for the damage so that you can get back to work as soon as possible. If you own a food truck and in addition, decide to expand your business by opening a brick-and-mortar location, then a BOP is also for you.
How much does a business owner’s policy cost?
The cost of your business owner’s policy depends on a few factors. First, the coverage limits that you choose impact cost. The higher the limit then the higher your premium will likely be. Other factors impacting cost are the age, location, and value of the property you want to insure. The industry that you are in is also factored in. If your business is considered high-risk, then your premium may be higher. Like any other insurance policy premium, your claims history matters as well. Finally, the size of your business can affect the premium. The larger your staff the higher your risk exposure. That’s why it’s important to call your agent and discuss the possible discounts you can receive to help lower your premium.
Is a business owner’s policy right for me?
If your business has a physical location and you have tools, equipment or products that can be stolen or damaged, then a business owner’s policy is right for you. If your business entails high risk operations that could potentially cause injuries and result in lawsuits, then BOP is right for you. Accidents that damage a client’s property can happen anytime. Don't just hope it never happens, use your common sense, and cover yourself with a business owner’s policy.
If your business needs to extend to a vehicle or a fleet, click here to get more information about commercial auto insurance. This separate policy can be combined with BOP to give you even more protection. If you are building a start-up, you may have questions about what insurance is best for you. Let us help.
Call a bilingual agent at 1-800-718-5127 today for an immediate quote and get your questions answered!
Disclaimer:
Seguros Avanza is the brand name for Infinity Insurance Agency, Inc. This material is for general informational purposes only. All statements are subject to the terms, exclusions, and conditions of the applicable policy.