Business Owner’s Policy (BOP)
What Is Business Owner’s Policy (BOP) Insurance?
A Business Owner’s Policy (BOP) combines two policies at a discount that most businesses need: Business Property and General Liability. BOP Insurance helps cover your business from claims resulting from things like fire, theft or another covered disaster and from claims involving bodily injury, property damage and personal and advertising injury that could arise from your business' operations.
Who Needs a Business Owners Policy? (BOP)
BOP insurance may be right for your business if:
- Your business is outside of your home
- You have less than 100 employees and less than $5 million in sales
- You have property or equipment you need to protect
- You want to protect investments you’ve made in your business
What Does a BOP Cover?
BOP’s keep the physical assets of your company such as the building, its contents and any outdoor fixtures such as signs and fencing protected. Other important coverages can be added, based on the unique needs of your business, such as business income replacement due to a covered loss like fire or theft.
Here are a few examples of incidents that could be covered by a commercial property policy:
- A burglar runs off with your valuable equipment and tools
- A fire destroys your building and the contents inside
- A windstorm damages the fencing or signage around your building
No one expects a customer to sue or a fire to destroy their building, but incidents like these happen every day. In fact, a study by The Hartford shows that more than 40 percent of small businesses will experience an insurance claim in the next 10 years. Business Owner's Insurance makes sure your business can handle whatever comes its way.
Want to Keep Your Commercial Property Insurance Costs Down?
Here are a couple of tips:
- Consider "actual cash value” coverage versus “replacement cost”. This will cost less than a "replacement cost" policy – but it also covers less. Replacement cost refers to the amount necessary to repair, replace or rebuild property or equipment to it’s original condition. Where "Actual Cash Value" replaces it with similar style or quality based on the current depreciated value. Actual cash value insurance may work well if you can easily replace all your equipment with used equipment, but before making this choice, be sure to consult a Builders' Choice agent, who will know if the savings is worth the lower payout.
- Consider "named perils" coverage. "Named perils" coverage usually costs less than an "open perils" policy because it covers less. So again: if your risk exposure is limited, this might make sense. But it could also end up costing you in the long run.
Still have questions about BOP Insurance? Contact a Builders’ Choice agent today!