Business Owner’s Policy
Some small to medium-sized businesses are eligible for a Business Owner’s Policy (BOP), which bundles General Liability Insurance and Property Insurance into a single, cost-saving policy. Eligible businesses are generally on the lower end of the risk exposure scale, such as restaurants, retail stores, apartments, office- or service-based businesses, wholesale distributors and contractors.
One factor to consider for your business is that the Property Insurance part of a BOP policy generally covers only “named perils,” such as fire, explosion, wind damage, smoke damage, or vandalism. In some cases, “open peril” all risk coverage may be available, depending on the nature of your business, but these require special forms and are not considered standard.
What a Business Owner’s Policy Covers
Types of Property covered on a BOP may include:
- Buildings: Owner or rented business space, additions, storage buildings, and outdoor fixtures.
- Personal business-related property: This category includes items owned by the business owner or temporarily on loan from a third party for business purposes. Generally, these items must be stored in close proximity to the main premises.
Business Owner’s policies may include business interruption insurance with property coverage, providing up to 12 months’ income when business are forced to shut down operations because of a covered property event, such as a fire.
The Liability portion of a BOP may include:
- Coverage for third parties who suffer bodily injury, property damage, or personal injury on covered business premises or caused by the owner or employees.
- Compensation for legal fees related to third-party lawsuits, such as attorney fees, court costs, settlements, and medical expenses.
BOP policies DO NOT include:
- Liquor liability insurance
- Professional liability insurance (doctors’ malpractice, for example)
- Workers Compensation Insurance
- Health Insurance
- Disability Insurance
- Business Auto Insurance
As with all Business Liability Policies, there is no one-size-fits-all type of coverage. You may need additional coverage or special endorsements, or your business may require higher levels of protection than Business Owner’s Policies can offer.
Call Alliance Insurance Group today and let our expert Independent Agents help you determine what limits and types of coverage your business requires, or fill out our online form to request a quote.
Business Umbrella Insurance
Are you in a business with a higher risk of exposure? You may already have General Liability Insurance (GLI), but do the coverage limits provide adequate protection? For example, if your GLI covers a million dollars in liability damages, but you are sued for four million dollars, your business will have to pay the difference.
A Business Umbrella can provide higher limits and additional liability protection for you and your business.