Why Business Owner’s Policies Are Important Assets
As a business owner, you have to deal with a lot of potential liabilities. Business Owner’s Policies (BOPs) are a simple way to make sure that your business’s primary assets are protected. A BOP combines multiple types of coverage into one package. These generally appeal to smaller and medium-sized businesses, which are more likely to lose everything in a serious liability dispute. Here’s more information on obtaining BOP insurance for your business.
How Does a BOP Protect Your Business
Generally, Business Owner’s Policies combine property and liability coverage, which allows you to save money. You can also amend your policy to add more coverage, such as cyber liability insurance. Cyber liability coverage protects your business if hackers compromise sensitive information such as your customer’s financial data.
Property insurance covers your business if a pipe bursts at your store or severe weather moves through the area and damages everything. Property insurance also protects you if you accidentally damage someone else’s property.
This type of coverage protects your business if one of your customers is injured on your property. Your customer’s medical expenses will be covered, protecting you from a potentially expensive lawsuit.
Business Interruption Insurance
Business interruption insurance covers you if a disaster occurs and you are unable to operate your business. You will be reimbursed for your lost income until your business is restored.
Who Is Covered by Business Owner’s Policy?
A BOP protects your business and employees against possible claims. All of your property is also covered if it is damaged or stolen. If you are doing contractual work and the other party would like to be insured, your BOP will cover them and any potential claims will be handled through your policy. If you sell products or equipment, you are also covered against claims alleging that the products were damaged.
The policy limits on a BOP vary based on the policies in your bundle. Generally, you will be covered for a year if your business has to cease operations. Look over your policy carefully so that you’ll have a clear idea of which events are covered. You’ll only be compensated for covered events such as fire damage or vandalism. You will have to add special coverage for any property not covered under the policy. You also have the option to purchase a policy that provides open-peril coverage.
Things to Consider
Having a BOP is the most affordable way to cover your business in an extensive manner. If you operate your business in a physical location, you can rely on the coverage if the building is destroyed. BOP can cover you even if you are working remotely. Also, remember that some businesses are not eligible for a BOP. Before finalizing coverage, think about the size of your business’s primary location, your annual revenue, and your plans for the future (hiring more employees or building another location).
BOP are versatile assets that will cover your business over the long run. The experts at Little & Sons Insurance Services will help you find the right policy to protect your investment. Contact us today to learn more!