The Versatile Business Owners Policy (BOP)
The versatile business owners policy (BOP) is sometimes known as a businessowner’s policy and a BOP. It is a package of property, liability, and extra coverage that are needed by most small businessers. The same coverage are available in a more complex Commercial Package Policy (CPP) but the BOP is usually cheaper and more comprehensive out of the box. Insurance companies have bundled the most requested policy provisions into a single policy to make it easier for you to buy insurance for your business. In most cases, the premium for the policy is less and the coverage is more complete.
The typical business owners policy (BOP) includes property coverage, liability coverage, and loss of income. When the business has an interruption caused by something covered in the policy the policy will pay the business for the loss of income for up to twelve months (12) after the loss. The Small Business Administration (SBA) estimates that more than 40% of business never reopen after a loss so the business interruption coverage helps keep a business in business.
Business Owners Policy (BOP) Coverage Details
Most business owners policies (BOP) offer property coverage on a special form (open peril, accidental direct physical loss basis). The BOP policy form of coverage provides coverage for all losses except those which are limited or excluded. It is preferred to use this form of coverage because it largely removes the burden or requirement to prove a loss is covered under the policy. The special open peril basis of the policy means that unless excluded or limited elsewhere in the policy, the loss is covered. There is a wide assortment of additional property endorsements to add coverage for specific needs of the business.
The liability portion of the coverage provides protection for third-party claims by others who suffer bodily injury, property damage, personal injury or advertising injury as a result of the business operations either caused by employees or otherwise. Guest medical coverage is also provided in limits up to $10,000. Guest medical coverage is included to offset medical services provided for immediate care of a guest if they are injured on your property. It is available to help establish good-will for the business with the injured party. There are a wide variety of endorsements available to tailor coverage more closely to the business needs.
Most BOP policies exclude liquor liability, professional liability, and other types of insurance that are usually obtained separately. For example, workers compensation, health insurance, and disability coverage are written on separate policies. The business owners policy also does not include coverage for autos. The policy can be amended to include coverage for hired auto and non-owned auto exposures that are common exposures for most businesses.
The most common additional coverage that is usually included are mechanical breakdown, crime coverage, fidelity and employee dishonesty, computer equipment, and spoilage insurance. The typical needs of a particular business will drive the types of policy adjustments need to be made to provide the coverage you want. The Business Owners Policy (BOP) does not usually permit operations away from the premises to exceed certain limits. In other words, the BOP is designed for businesses where most of the work or business activity is conducted on the premises. Carpet and flooring stores might sell carpet and then install the products in the house. Companies writing BOP’s want to make sure they are insuring a retail carpet and flooring store and not a contractor so they will often look at the amount of the total sales that are attributed to installation versus sales. We also offer excellent contractor-tradesman insurance packages for a variety of artisan trades.
We Are Small Business Insurance Experts
The Business Owners Policy (BOP) is available to hundreds of different business types. Generally speaking, we can usually help small business owners operating small restaurants, apartment and condo properties, retailers, offices, service based businesses, wholesalers, distributors, and associated businesses. We know small business. Call us and find out whether you can enjoy the broad coverage and low cost of a business owners policy for your business. If not, if we cannot provide you a BOP we can help you with the more flexible Commercial Package Policy (CPP).
I have spent almost my entire four decade insurance career working with and insuring small business owners. I maintain regular office hours Monday – Friday and from 9 – 5 most days for your convenience. If those hours won’t work, call and schedule time with me that is mutually convenient at most other hours of the day and week. You can reach me at (513 779-7920. I have listed many of the most popular business classes to the right on this page. Click on the link and you will be taken to the page that relates to that business type for specific information for that category of business.
