Written by Raisa

July 17, 2021

Insurance BOP; Understanding Business Owners Policy

What Is Business Owner’s Policy Insurance (a.k.a Insurance BOP)?

A business owner policy is also known as BOP insurance. It combines various insurance coverages with additional protection into one convenient package. Indeed, this type of coverage usually fuses business property and business liability insurance into one single policy. Furthermore, insurance BOP covers your businesses claims for fire, theft and other covered disasters. Similarly, business owners insurance also covers claims that could arise from your business’s operation. For example, claims of bodily injury, personal and advertising injury, as well as property damage.

More often than not, insurance companies allow businesses to tailor their BOP insurance to help meet their unique needs. For instance, you could possibly add optional coverages like data breach and business income for off-premises utility services.

Indeed, an insurance BOP is great because it can be custom-made to fit industry specific businesses. That also means it’s great for businesses of any size, especially small businesses. Customizing your BOP Insurance is an imperative first step when insuring your business.

Getting Insurance BOP

Who Needs an Insurance BOP?

BOP insurance may be right for your business if:

  • First, your business has a physical location. In other words, it is run out of your home, a rented or owned office, store or garage.
  • Second, you have less than 100 employees, as well as less than $5 million in sales
  • Furthermore, you have property or equipment you need to protect. For instance, you have assets that are at risk of being stolen or damaged. From digital assets and customer data, to equipment, furniture, cash or inventory, some assets can be very hard to replace.
  • In addition, you want to protect investments you’ve made in your business
  • Last but not least, there’s a possibility that someone might sue you. For example, a customer slips and falls at your workplace and suffers injury. A proper business owner’s insurance can protect you from a hefty out-of-pocket fee to cover the customer’s medical expenses.

What does an Insurance BOP cover?

First, Commercial Property

First and foremost, insurance BOP provides coverage for commercial buildings as well as the movable property owned by and used for the business. In fact, this type of assets is commonly referred to as business personal property. Furthermore, BOP can also pay for other things like debris removal and pollution cleanup as part of a covered loss. With this in mind, know that you can extend your policy to add or remove coverages.

Second, General Liability

Moreover, the liability coverages available on a BOP are the same as those on a general liability policy. For this reason, it includes protection against liabilities like customer injury and property damage, advertising injury, and product related claims. However, an insurance BOP doesn’t cover your employees. Rather you’ll need a separate workers’ compensation policy.

Third, Business Income

Meanwhile, business interruption covers the loss of income resulting from a fire or other catastrophe that disrupts the operation of the business. Moreover, it can also include the extra expense of operating out of a temporary location.

Equally Important, Equipment Breakdown

Finally, an Insurance BOP can cover damage to equipment essential to running the business.


Insurance BOP Cost

Insurance BOP Cost

In 2020, small businesses nationwide who bought a new insurance BOP paid an average of $84 per month. Meanwhile this gives you a general idea of what BOP insurance costs, it’s not necessarily what you’ll pay. For instance, this price is a calculation resulting from several different business types with varying levels of risk. As a result, your final price will mostly depend on certain attributes of your business including coverage needs, type of profession, number of employees and claims history.

Common Questions Relating to Insurance BOP

1. First, what kind of businesses need an insurance BOP?

Because of the practicality and efficiency of the policy, small to medium-sized businesses with commercial property should consider a BOP.

2. Second, what is business personal property?

As mentioned above, business personal property is coverage for property owned and used by your business. Indeed, it’s a coverage included in a business owners policy.

3. What’s the difference between an insurance BOP and general liability coverage?

A business owners policy combines general liability and property insurance into one easy to manage policy. Generally, liability protects your business from third-party liability claims, including bodily injury, property damage and personal injury. In fact, there’s no need for an additional general liability insurance policy if you have a BOP.

Beyond Your Insurance BOP

Insurance BOP Cyber Liability

Employees and Insurance BOP

As mentioned before, workers’ compensation insurance is not included in a Business Owner’s Policy. However, having workers compensation insurance is mandatory in most states. To illustrate, workers’ comp insurance coverage pays an employee or employee’s family for medical costs in the event of a work-related injury, illness or death. Furthermore, it also helps cover an employee’s income if they are out of work due to a covered illness or injury.

Owning, Renting or Leasing Company Vehicles in Relation to INsurance BOP

Insurance BOP does not cover company vehicles. But for businesses that use cars and trucks, commercial auto insurance is another important policy to consider. Moreover, this policy helps protect your business from financial losses when the business owner or an employee is found at fault for an auto accident.

Accounts Receivable

This policy insures against loss of sums owed to the insured by its customers. However, they must qualify as uncollectible because of damage by an insured peril to accounts receivable records.

Crime Insurance for your Insurance BOP

Although some basic insurance BOP protects some common risks, such as theft, you should still look into crime insurance. With this in mind, make sure to protect your business against burglary, robbery, forgery, computer fraud, employee dishonesty and other crimes.

Cyber Liability

Get coverage for computer attacks and damage to electronic data and computer systems. Also offset the effects of your database being hacked or getting a virus.

Employee Practices Liability As Well As Errors and Omissions Insurance

Protect you and your company against employee lawsuits. Likewise, get protection against client lawsuits for negligent acts. As well as errors or omissions committed during business activities that result in a financial loss.

Add Inland Marine Insurance to Your Insurance BOP

In addition, cover your property in transit, including the transport of goods or equipment over water and land.

What You’ll Most Likely Need to to Get Insurance BOP

  • First, basic information about your business, including annual sales receipts
  • Second, information about your building’s construction, including age, material and square footage
  • Also employee information, including how many workers are on staff
  • If you will be insuring vehicles associated with your business, have information about the car types, VIN numbers and drivers on hand
  • Details about any prior claims for your company are equally important

KEY TAKEAWAYS

  • A business owner policy or insurance BOP is a package that bundles basic insurance coverages
  • As a result, a BOP typically protects business owners against property damage, peril, business interruption, and liability.
  • However, businesses can often opt-in for additional coverage, such as crime, spoilage of merchandise, forgery, fidelity, and more.
  • Moreover, insurance providers determine if a business qualifies for a BOP based on business location, the size of the location, the class of business, and revenue.
  • Finally, a business may qualify for special considerations if it meets certain eligibility qualifications.
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At AllCity Adjusting we help residential and commercial clients alike get the claims support they need. Moreover, we have over 50 years of combined experience helping get our clients the max settlement time and time again. If your claim has been low balled or denied entirely we can help increase your maximum settlement. Call us today for a FREE consultation. Experience the AllCity difference.

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How to Handle a Commercial Large Loss Restoration

If water, fire or a storm has severely damaged your business, you need help. Dealing with a large-scale catastrophe by yourself is not the way to go. Filing a commercial large loss restoration claim will take time, effort and patience.
Therefore, you should hire a public adjuster so that your insurance company pays you every dollar to which you are entitled.
You will also need a restoration company to immediately respond to your business. In fact, most good ones are available 24 hours a day, seven days a week. In addition, they will make an emergency response to begin the restoration process.
There are several procedures restoration services companies go through when responding to a commercial property damage incident.

Problems Homeowners Have After Filing an Insurance Claim

Problems Homeowners Have After Filing an Insurance Claim

Unfortunately, fires, hurricanes, or other natural disasters can do serious damage to a home. Certainly, most people have homeowners’ insurance in case of property damage. Of course, they will file an insurance claim under their home insurance policy. However, often there are problems homeowners have after filing an insurance claim.

Fire Damage Insurance Claim Is Denied

Fire Damage Insurance Claim Is Denied

Of course, having a fire in your home can be terrifying for the homeowners and their families. The amount of damage to the property insured, personal property lost and the seeing soot, smoke, and burned walls will traumatize the entire family. Certainly, as the property owner, you will file a fire insurance claim with your homeowners’ insurance company. However, what do you do if all or part of your fire damage insurance claim is denied?

Deal with Home Insurance Claim Adjusters

If a storm, fire or other natural disaster damages your home, you first want to make sure everyone in your family is safe. After that, you will survey the damage. If it is more than very minor, you will probably file a homeowners’ insurance claim. Therefore, it will be helpful to know how to deal with a home insurance claims adjuster.You should file an insurance claim as soon as possible to start the claims process. Certainly, the sooner you file a claim, the sooner you can get your insurance settlement.After you file a claim, an adjuster working for the insurance company will come to inspect the damage to your home. Insurance claim adjusters may work directly for the insurance company. Or they may be independent adjusters.However, don’t be fooled. Independent adjusters only work for insurance companies as independent contractors.As such, they are looking to settle your claim quickly and cheaply. Insurance companies are not in the business of simply paying money to insureds. Consequently, company and independent adjusters know that and act accordingly. The insurance adjuster evaluates your property, collects evidence on the extent of the damage and rules on your claim.

Understanding the Insurance Claims Process

Understanding the Insurance Claims Process

There are few events more traumatic to homeowners than having a fire in their homes. Fire damaged homes can mean flame and heat damage and smoke and soot throughout the house. Additionally, water damage from the efforts to put out the fire appears on the walls, soaked furniture, and water-logged carpeting. Unfortunately, if the damage is extensive, you will have to decide whether to rebuild or replace your home after the fire.

Estimating Fire Damage and Restoration Costs

Estimating Fire Damage and Restoration Costs

There are few events more traumatic to homeowners than having a fire in their homes. Fire damaged homes can mean flame and heat damage and smoke and soot throughout the house. Additionally, water damage from the efforts to put out the fire appears on the walls, soaked furniture, and water-logged carpeting. Unfortunately, if the damage is extensive, you will have to decide whether to rebuild or replace your home after the fire.

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