Understanding Bop Policies

BOP Policies

As any business owner knows, everyone pretty much requires a similar type of insurance coverage for his or her company. For example, insurance requirements are much the same for the car you use in your business as it is for a car used for personal travel; liability, collision and comprehensive, along with medical payments (known as personal injury protection in some states) and also coverage for uninsured motorists.

Other areas also require similar coverage options. Property and liability exposures are two key factors when making decisions about what needs to be insured and for how much.

One of the great advantages of purchasing a Business Owners Policy (BOP) is that there is many different types of coverage that you can endorse onto bop policies. This could include equipment breakdown coverage, or several other liability and property insurance options. A BOP is a package policy usually purchased by small to medium sized businesses. These packages are designed for, and mainly targeted to low risk companies.

Not all coverage is available with a BOP

Some, but certainly not all of the policies required are offered under a BOP. Some bop policies will also offer business income and extra expense protection after an insured loss.
Notably they do not cover many of the required or necessary coverage options that should be researched and considered, such as workers’ compensation, professional liability, or business vehicle coverage.

Your business may be running smoothly, and this is always an encouraging sign, but without the proper insurance in place, a company that is making money hand over fist could find itself suddenly bankrupt. Don’t be lulled into a false sense of security just because things are riding high at the moment. It’s a mistake to think that a catastrophe could never happen that would seriously impact your business. Disasters are often just a heartbeat away, and they can strike in many different ways. Even something seemingly minor could end up wiping out a lifetime of hard work.

It’s important to sit down with an agent, someone knowledgeable in your particular field of work, and examine all of your possible options before making any final decisions. One of the bop policies available in your area just might meet all of your current needs.