Business owner's policies (BOPs) are package policies designed for small to medium-sized companies and provide both property and liability coverage at one affordable premium. A BOP is generally available to retail, office and some service risks, depending on the size and type of business, and can be a good alternative to purchasing separate policies for liability and property insurance.
A BOP includes property coverage for the assets of your business—building, contents, equipment and computers, to name a few. It also provides Business Income coverage to provide for the lost income and the expenses incurred when a company is forced to vacate its premises due to a covered insurance loss. Property coverage is on a replacement-cost basis—meaning your damaged property is replaced without deducting for depreciation.
Businesses may purchase additional coverage based on the particular needs of the business. For example, a retail store might carry coverage for employee dishonesty to protect for the loss of business property due to employee theft, embezzlement, fraud or other criminal acts. A dry cleaner might purchase additional coverage for mechanical breakdown to cover the machinery the business uses on a daily basis. They may also purchase additional coverage for the property of others in their care.
The BOP liability provides coverage for both your premises and your products and completed operations coverage and covers four basic types of claims:
- Bodily Injury is damage to a person’s body or physical well- being caused by your employees or products.
- Property Damage is damage to any type of real estate or personal property.
- Personal Injury is damage to the reputation of a person or business including libel, slander and defamation of character.
- Advertising Injury refers only to liability for the harm that results from the insured’s advertising its goods or services, such as an advertisement that slanders another organization’s products or services.
No matter how hard you work, one disaster can destroy your business. Protect your business with the proper insurance and trust the people at Holden Agency Insurance to help you customize a BOP to meet your specific needs.
Contact us today for a FREE comprehensive quote.