As an owner of a business, you should know about the three types of insurance you can use to protect your business: workers’ compensation, property, and liability. All 50 states require that businesses carry workers’ compensation insurance. Property insurance and liability insurance are not always mandatory, but they are advisable because protecting your assets is good common sense.
Business owners’ policies (BOPs) are package deals that include property and liability coverage for one affordable cost. If you are the owner of a small or medium business, this may be a better alternative than purchasing separate policies.
High-risk enterprises and larger corporations are usually not eligible for a BOP. Various criteria are used to determine eligibility, including the type of business, the size of the premises and the amount of offsite activity that takes place. Premiums are calculated by assessing similar criteria, including location of the business, financial stability, security, fire hazards and building construction.
What Does a BOP Cover?
BOPs cover property protection for the place of business and contents within, and also any personal property that is brought into the building. BOPs typically cover standard perils such as fires, vandalism and theft. Damage caused by earthquakes and floods is generally not included.
BOPs are tailored to each business’s specific needs and the amount of liability coverage necessary based on the amount of assets. Liability coverage can be used to defend the business in the event of a lawsuit and also covers damages if the business should be sued for personal injury or damage to property. Liability coverage will also extend to the medical expenses of anyone who is injured (excluding employees) as a result of normal business operations.