Business Owner's Policy (BOP)
Business owner’s policy provides both property and liability coverage for eligible small businesses with low-risk in one single package. BOPs are written on special coverage forms that are generally very similar to their monoline property and liability form counterparts, but they typically have some unique features that make them especially advantageous for businesses that qualify. As the bundle of services often cost less than the total of all the individual coverage, a business owner can save money by choosing a BOP. Generally, BOPs include property, liability, vehicle, business interruption, and crime coverage. The following are the most sought out coverages included in a Business Owner’s Policy:
- Property and Liability Coverage
Coverage for your furniture, inventory, equipment, outdoor signage, other’s property, and general liability
- Equipment Breakdown Coverage
Coverage for loss due to mechanical or electrical breakdowns of nearly any type of equipment, including photocopiers and computers. The coverage applies to the cost to repair or replace the equipment and any other property damages that results from the equipment failure.
- Business Income Coverage
Coverage for protection against loss of income or profit, in which a business has suffered a property loss or damage from a covered peril. As such the coverage is also known as Business Interruption Insurance and generally covers payroll, rental income and other expenses.
- Ordinance and Law Coverage
Coverage for loss caused by enforcement of ordinances or laws regulating construction and repair of damaged buildings. Older structures that are damaged may need upgraded electrical; heating, ventilating, and air-conditioning(HVAC); and plumbing units based on the local building code requirements.
Premium for business owners policy is largely dependent on the type of business, the entire value of business assets, and annual sales amount. Other factors that determine your premium are based on construction type, occupancy, fire protection, security, and exposure to fire and theft.