What Am I Getting? Understanding Coverage for a Business Owners Policy (BOP)
Recommended for small- and medium-sized businesses, a business owners policy, or BOP for short, is a deal in itself. Policies cover multiple insurances a company needs at this size while offering a lower premium.
Businesses, especially in the early stages, aim to cut costs while following recommended industry and legal practices. When your company has at least a few employees, BOPs make financial sense. So what will your policy cover?
The Basics
A standard BOP typically includes the following:
• Property: Your office building and any contents are insured against damage and theft.
• Disruption: Such coverage may reimburse your business for up to a year’s worth of income if a situation halts or cancels operations. Some policies may further allow for temporary relocation.
• Liability: You’re covered in the instance your company or one of its employees does harm to someone or something. Liability tends to be broad, encompassing personal injury, property damage, negligence, failure to provide adequate services, and advertising liability, such as copyright infringement, defamatory statements, and libel.
Specifically within liability, policies may offer up to $1 million in coverage for:
• Bodily injury and property damage
• Medical expenses
• Liability from false arrests, imprisonment, libel, wrongful eviction, slander, and defamation.
Additional Coverage
BOPs work like any other insurance policy: A company wants coverage tailored to its industry and specific needs.
By default, these policies do not include employment practice coverage, auto insurance, or workers’ compensation – you typically receive general liability and property coverage. However, in working with an agent or insurance carrier, you can adjust your BOP to include any of the following:
• Replacement cost coverage, including building and personal property
• Transit and off-premises coverage
• Damage coverage
• Workers’ compensation, to protect you and your employees against injury-related financial losses.
• Employment practices liability
• Identity theft liability
• Data and equipment theft coverage
• Valuable documents coverage
• Pollution liability
Make sure your business is prepared for the unpredictability of the future. You never know when a lawsuit, accident, or natural disaster could damage your building or have its toll exceed your profits. To understand what your business needs, work with Ion Insurance to obtain comprehensive, tailored coverage.
