While insurers often sell business insurance policies separately, most will make available to small or medium-sized companies business insurance packages that combine protection from all major property and liability risks in one package called a business owner policy, or BOP. Larger companies will often purchase a commercial package policy or they may need to customize their policies to meet the special risks that they may face.
Different coverages needed by most companies
The standard BOP covers the three essential areas of concern, which includes liability protection. This covers a company’s legal responsibility for any harm that it may cause to others. For example, If an owner, or anyone that he or she employs, does (or fails to do) something that may cause bodily injury or property damage to others, due to defective products, faulty installations and any errors in services provided, can be grounds for a claim.
Property insurance covers the buildings, along with the contents (equipment, furniture and the like) owned by the company. There are two different forms available – standard, and special, which will provide more comprehensive coverage for companies with specific needs beyond the standard coverage.
Business interruption insurance is vital for any company that suddenly, and unexpectedly must close due to anything from a power outage to weather conditions that causes damage or destroys their property. In fact, it provides for anything that forces the business to cease to properly function as outlined in the policy. This also covers loss of income and can include any extra expense of operating out of a temporary location while repairs are being made.
It’s important to note that a BOP, for all of the coverage that it does provide, doesn’t cover everything. Certain claims, including those arising from professional services performed are not covered, nor are client damages due to inaccurate or incomplete advice given to a client that results in financial loss or reputational damage. A separate policy needs to be purchased for these exposures.
If you think a business owner policy is a good fit for the type of operations that you’re engaged in, speak to an agent that can determine rates quickly and efficiently.