Business Owner's Policy Coverage

Most companies selling insurance offer a combined package that covers liability and other major coverages in one primary package. For small and mid sized companies this package is called a Business Owner’s Policy (BOP). Larger companies usually choose a commercial policy that will cover the different needs of their larger size. Most BOPs include the following types of coverage.

Property Insurance

Property insurance covers all property owned by the company, including the building and the supplies housed inside. There are two types of property insurance; most companies opt for standard coverage, but you can also choose special coverage which is more comprehensive.

Business Interruption Insurance

This type of insurance covers the loss of income resulting from a major catastrophe such as a fire. Sometimes this insurance will also cover the costs of operating from a temporary location until the original location is repaired. The amount covered will be based on your company’s yearly income.

Liability Protection

Liability covers your company's legal responsibility for the harm it may cause to others, whether it be employees, customers, or other individuals. This includes both harm that comes as a result of something you and your employees did, but also it includes damage resulting from something you or your employees failed to do. Some of the major areas that liability insurance protects is when your failures cause bodily injury, property damage due to defective products, faulty installations, and mistakes in the services that were provided to the client. Liability protection protects you and your employees if a customer files a lawsuit against the company; however, if a lawsuit is filed against a single person, they may not be covered.

What BOPs Do Not Cover

BOPs do not cover other types of insurance, such as health, auto, professional liability, worker’s compensation, or disability. Separate policies will need to be purchased for your employees needing coverage in each of these areas. Although you can get group packages, they will not be combined with your BOP; however, if you do purchase a number of policies from one insurance company, you can often get discounts on all of your policies.

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