The crown jewel of commercial property and liability package policies: BOP
Like your home, your place of business is your castle. You’ll need to protect it wisely. Whether a windstorm blows off your roof, a piece of equipment breaks down, or a client slips and falls on your sidewalk—it is important to have the proper coverage in place before
an incident occurs.
The insurance industry offers several methods for insuring offices. The Business Owners Policy is your best buy. It packages together several property and liability coverages at an affordable rate. As your practice grows, the BOP offers a variety of optional endorsements that allows it to grow with you.
A BOP packages together property and liability coverage for your office. One way to think of it is the business version of a homeowner’s policy. If you purchased all of the BOP coverages individually, it would cost much more. By packaging the coverage, you get a wide range of protection at an affordable rate.
The primary Property coverages on a BOP policy are for your building and business personal property.
General Liability provides coverage for:
- Bodily injury, property damage, personal injury, and advertising injury caused by your business operations, products or premises.
- Premises bodily injury claim occurs when a person such as a client is injured on your property and sues you for their damages such as medical bills and lost wages.
- Advertising and personal injury liability protects you against allegations you stole someone’s ideas, libel, slander, false arrest, invasion of privacy and copyright infringement.
- Hired/non-owned auto liability protects you from claims such as an employee using their vehicle during company time, injuring someone in an accident, and you getting named in the lawsuit.
- Products liability claims occur when a person is injured by a product you gave them.
Business Interruption Insurance provides two important coverages after a claim: Business Income and Extra Expenses.
- Business Interruption Insurance typically covers lost revenues while you are waiting to get back into your office because of a covered claim. For example, if you had to suspend operations while repairing your office building after a fire or hurricane.
- While you can use your Business Income proceeds any way you see fit, it is designed to help you pay the mortgage, rent, employees, or other business expenses.
- Extra Expense coverage is included to help you continue to conduct business while waiting for your primary location to be rebuilt, such as renting a temporary office space and equipment.
As a package policy, BOP includes a variety of significant coverage extensions.
- Accounts receivable
- Valuable papers & records
- Outdoor signs
- Employment practices liability
- Building glass
- Computer equipment
- Employee dishonesty
- Equipment breakdown
- Forgery and fidelity bond
- Inland marine
- Fine arts coverage
- Earthquake protection
- Outdoor property
- Property off premises
- Flood: Although water damage from a broken pipe or tree falling on the roof are covered, any type of water that rises on the surface of the ground is excluded. To cover flood damage, consider purchasing Flood Insurance.
- Wear & Tear: Insurance is meant for sudden and accidental damages, such a fire or hurricane. BOP is not a maintenance contract that will pay for a new roof when yours is old and needs replacement.
- Employees: If employees are injured on the job you won’t find coverage under the BOP. If you have employees, protect them with Workers’ Compensation insurance.
- Intentional acts: The policy excludes bodily injury or property damage which is expected or intended by an insured.
- Liquor liability: Bodily injury or property damage claims resulting from selling, distributing or serving alcoholic beverages are excluded.
- Nuclear hazards, criminal acts, fraud, insects, and earthquakes are excluded (although some policies will allow you to buy earthquake coverage for an additional charge).