Historically, the insurance industry wanted to design a policy for small, typical Main Street businesses. These businesses had some property, maybe their building and stock, and low risk of liability claims. Insurance companies designed the BOP for these businesses whereby the insured bought a package which included property, liability, some crime coverage, and other incidental coverage at one low cost.
From a risk perspective, these Main Street businesses were very similar.
In the modern era of BOPs, many businesses now qualify for specialty industry coverage. Restaurants, small manufacturers, small contractors, and artisans can all qualify for this type of policy.
BOPs cover property similarly to conventional policies. Typical options are extended as part of the package. For example, crime coverage is included in BOPs rather than having to add this coverage on. Investigate the limits of these add-on coverage to be sure they are adequate. We would be happy to discuss the details with you to design a program to meet the specific needs of your business.
Liability coverage follows the general liability format, except again, some extensions of coverage are included. These extensions may have lower liability limits, so again, reveiw these with your insurance professional.
If your business does not own cars or trucks, but you occasionally use your personal auto in your business, consider adding non-owned and hired automobile coverage to your BOP. This coverage pays for your company’s liability while you use your car for your company’s benefit.
Business owners policies began as a one size fits all retail risks insurance form. It has evolved into an important small business, and now not so small business, policy to cover industry typical businesses.
Your business does need to qualify for this coverage. Please call us for a review and suggestions regarding the best fit policy for your business needs.
