What Does a Businessowners Policy (BOP) Cover?
With business insurance companies selling policies that provide combined protection from all major liability and property risks in a single package, consumers can now benefit from maximum protection at an affordable cost. On top of that, coverage is also available for purchase separately. The majority of mid-sized and small companies usually purchase a BOP or businessowners policy. Package policies are generally considered by businesses that usually face the same degree and type of risk. However, there are also packages designed specifically for larger businesses which may be interested in buying a commercial package policy or a customized policy that fully addresses their specific needs.
Liability protection: This type of policy will cover your company in the event it does harm to others. In this case, harm refers to the things that the employees and the company itself fail to do that may eventually cause property damage or bodily injury due to errors in the services provided, faulty installations or defective products.
Business interruption insurance: Covers any type of damage that results from various catastrophes, such as a fire that directly impacts the business’ operation. This type of policy may also cover expenses for temporarily relocating the business.
Property insurance for the buildings (including their content) the company owns: The buyer can fill out 2 forms, including special (providing comprehensive coverage) and standard.
It’s important to keep in mind that BOPs do NOT cover disability, health or workers compensation insurance. To cover your employees, vehicles or professional services, you need to get a separate insurance policy.