A Businessowners Policy (BOP) combines basic coverage needed by small and midsize companies into a single policy with a single premium. They are typically lower in premium then purchasing coverages separately. Businesses such as retailers, artisan contractors, restaurants, offices, salons all are eligible for BOP coverage.
A standard BOP is going to include the following:
Property Coverage for the building and business personal property. Coverage is provided typically under a Standard or Special Policy form. The Special form will offer the broadest coverage. It may cover the loss of business income and extra expense resulting from a covered property loss.
Liability coverage pays litigation costs and damages if the business is sued for injury or property damage. It also covers medical expenses of non-employees injured as a result of business operations. It also provides limited protection against slander or libel, advertising injury, and losses involving an operations products or services.
Many carriers will throw in a number of additional coverages not normally found on a mono-line property or liability policy. Be sure to read the policy carefully to understand all coverages, limitations, and exclusions.
Premiums are typically based on:
- Type of building construction
- Public fire protection
- Occupancy type
- Existence of fire sprinklers
- Deductibles requested
Be sure to read the policy carefully to understand all coverages, limitations, and exclusions.