Your small business does not need the pricing or the cumbersome insurance boilerplate of a Commercial Insurance Package policy. A Business Owner’s insurance policy referred to as BOP insurance will work just fine for your small business insurance needs. Aside from the low cost involved when purchasing a BOP policy, there is less paper to wade through and yet the insurance coverage afforded by this business owner’s insurance policy is very comprehensive.
The Business Owner’s insurance policy premium is driven by the property values you insure. The BOP policy does not contain a co-insurance clause. The BOP is not generally subject to an audit at the end of the policy term. The BOP insurance policy continuously renews until you request that it be canceled or stop paying premiums.
The Business Owner’s policy can ensure your real and personal property. It comes with enhancements automatically included or enhancements that can be purchased for additional coverage to be included at a nominal fee which picks up all the extras you need as a business owner but you probably don’t think about.
Typically the basic BOP will include:
- Computers and media including Laptop computers which are covered on a worldwide basis for a limit of $5,000
- Employee Dishonesty including ERISA up to $10,000 in any one occurrence
- Outdoor signs and landscaping subject to a policy limit
- Valuable Papers and Accounts Receivable insurance
All Section I property coverage is subject to your deductible which can be as low as $500 per claim. Of course, higher deductibles will reduce your annual premium. Don’t take a $1,000 deductible to save $80 because if you have a claim mathematically you are coming out on the losing end.
Included in the BOP insurance policy is coverage for your loss of business income and extra expense insurance for the actual loss you sustain for a period of 12 months. Depending on the insurance company you are insured with this period could be as much as 18 or 24 months.
Section II of your Business Owner’s policy provides for Liability coverage. The limit is generally $1,000,000 for each occurrence or claim and $2,000,000 in the aggregate. The aggregate limit is the most the company will pay in any one policy term for third party liability claims against you. The liability limits can be lower and in some instances, the insurance company may offer higher limits. This section of coverage provides coverage for your premises,
products, and completed operations. Personal and advertising injury liability is included. Your deductible does not apply to this section of coverage.
As with any insurance policy, there are exclusions, restrictions, and limitations. If you provide your independent agent with a complete and detailed description of your operations he or she will be able to get your policy as customized for you as possible under the Business Owner’s Policy or BOP.