Special Coverage You Can Include In Your Business Owner Policy

It’s no secret that almost every business owner has some sort of policy protecting them against liability. Something like Business Owner Policy (BOP) is a time-tested way to protect yourself and your business while you’re just starting.

Furthermore, this combines all fundamental property and liability risks into a single policy. However, there are certain specific circumstances in which you may get extra coverage.

Business Owner Policies At Glance

A business owner's policy, mainly intended for small and medium-sized firms, combines numerous insurance products into one.

Property, business interruption, and liability insurance are all standard components of company owners’ insurance. However, to qualify, most plans need firms to fulfill specific qualifying conditions.

The property insurance component of a BOP is commonly provided as named-peril coverage, which only covers damage caused by incidents expressly stated in the policy (typically fire, explosion, wind damage, vandalism, smoke damage, etc.)

However, some BOPs provide open-peril or "all-risk" coverage; this option is accessible only via the "special" BOP form, not the "standard" kind.

What does BOP usually cover?

Buildings are often included among those insured by a BOP (owned or rented). Moreover, it covers anything owned by the business owner and items owned by a third party but temporarily in the company or business owner’s care, custody, or control.

Generally, the business property must be within a reasonable distance of the company premises, within 100 feet.

Special Considerations

Crime insurance, car coverage, and flood insurance may also be included in a company owner policy. Depending upon the specific circumstances, the insurance carrier may establish agreements for extra coverage.

This extra coverage includes certain crimes, spoilage of merchandise, computer equipment, mechanical failure, forgery, and fidelity bond. Furthermore, the limitations for these categories are often minimal.

On the other hand, a BOP often does not cover professional liability, worker's compensation, health, and disability insurance.

Conclusion

A business owner's policy (BOP) often covers businesses against property damage, risk, business disruption, and liability. While coverage varies by the insurance provider, companies may also opt-in for extra coverage as long as they meet the requirements.

At Second Western Insurance Services, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (818) 952-5203. Get your free quote today by CLICKING HERE.