The Business Owners Policy:
Business Owners Insurance or Policy is also known as a B.O.P. A business owner’s insurance policy is considered a package policy because it affords protection for general liability and property which both can suffer losses. The B.O.P. started in Texas in the late 1970’s and has evolved into the main method of tailoring insurance for business owners. For businesses that have less than five million in sales and fewer than 100 employees, the Business Owners Policy provides a high degree of flexibility in addressing small business insurance needs.
For the property exposures, the Business owner’s policy protects against losses to the building, computer systems, and inventory as well as losses due to employee dishonesty or theft. Insurance coverage for business owner’s policy can be customized to fit the specific needs of an insured’s business:
- Hired and Non-owned auto Coverage
- Commercial Crime Insurance
- Can afford data coverage for insured’s who work on large amounts of data.
- Sign coverage
- Etc. the coverage can be tailored to meet the needs of a small business so the business is not taking coverages that are not needed.
Think of a Business Owners policy as similar to your homeowner’s coverage. Both policies provide protection for property and liability exposures and can be easily modified. Business Owners Policys provide protection for income loss on an actual loss sustained basis. The terms for receiving payment for the loss will depend on the coverage and company selected for protection.
The business owners policies will provide protection for the insured’s, and employees, as well as negligence committed while doing business. The policy can also provide medical payments that pay for injuries sustained on the insured’s premises without establishing fault. Under certain circumstances the coverage under the business owners policy can have a separate coverage part added to pick up professional liability exposure for very select group of classes.
The Business Owners Policy allows a collection of coverages to be put together in an efficient manner appealing to insureds and insurance companies while keeping costs low.