BOP Policy Offers Solid Protection to Small Businesses

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As a convenience, many orange insurance companies offer business insurance policies that have combined protection from many of the major property and liability risks that business owners face. The business owners policy (BOP) is a package purchased by many small and mid-sized businesses and was created for companies that potentially face the same types of exposures and have a similar degree of risk.

Larger companies often consider a commercial package policy in order to customize their policies to meet the specialized risks that they often face. The insurance market has been designed so that they can calculate and provide your company with a selection of insurers that can offer the best available rates.

Which policies can you purchase under a BOP?

A BOP generally includes property insurance for buildings and contents owned by the company. There are two different forms to choose from; standard and special, which will provide more comprehensive coverage. A business interruption policy is generally included as it covers any loss of income that could result from a fire or other catastrophic event that disrupts the business for any length of time. It can include any extra expense associated with having to operate out of a temporary location.

Liability protection is another important feature to have and covers your company’s legal costs when a claim is made for any harm that was caused to others. This includes an injury or loss as a result of actions that a business owner, representative, or employee takes, or fails to take, in the course of your business operations that may cause bodily injury or property damage due to defective products, faulty installations, or errors in services provided.

There are several areas requiring insurance that are not covered by a BOP, including professional liability, auto insurance, workers compensation, or health and disability insurance. You’ll be required to purchase separate insurance policies to cover these particular exposures. Regardless of the type of company being operated, the business owners policy is an integral part of any successful business. Running an enterprise without adequate amounts of orange insurance is a risk not worth taking.