Insuring your Business with a BOP
Before You Buy Small Business Liability and Property Insurance
Do you know what's covered by your Business Owners Policy (BOP)? Before you buy small business liability and property insurance, find out what's covered by the policy.
The Business Owners' Policy (BOP) provides coverage for property, liability and hired auto (e.g., rental cars, borrowed cars). The small business property insurance section of your Business Owners Policy (BOP) provides protection for your building and contents. The BOP repairs or replaces items damaged due to a covered loss in a building that you own or rent for your business.
The list of items covered by small business property insurance typically includes:
1. Inventory
2. PCs
3. Equipment owned or leased
4. Furniture and Fixtures
5. Money or securities
6. Personal Belongings
7. Property Being Held for Someone Else
8. Records
The BOP also provides small business liability insurance to protect your business in case you're sued. The commercial business liability policy includes coverage for personal injury, bodily injury, property damage and (often) advertising injury.
The small business property insurance policy excludes Wear and Tear, Mechanical Breakdown, Pollution, Nuclear Contamination, Flood and Earthquake. Detached buildings, signs and fencing are most likely excluded from your BOP but probably can be added on to the policy or covered by a separate insurance policy. Company cars owned by your business should be insured separately from your small business insurance policy. Other coverages may be included or added on to your commercial liability policy depending upon your line of business. Internet liability insurance is a must if you have a website.
What Should You Add to Your Small Business Insurance Policy?
- Crime coverage- for theft and employee dishonesty;
- Errors & Omissions (E&O)- Protects you from catastrophic claims due to negligence;
- Mechanical Breakdown- Losses resulting from equipment breakdown;
- Extra Expense- Costs to get your business up and running again ASAP after a loss.
Talk back with the author of this article: tell Lisa Nichols about your experiences with small business liability insurance
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