This Business Insurance California article explains how business owners policy works to provide you better understanding on how you can protect your business.
Business owners have a lot to consider when choosing insurance that fully protects their business. One coverage option, a business owners policy (BOP), can take the guesswork out of the process. A BOP bundles several types of coverage in one package, similar to the way a homeowners policy works, but is designed for small and mid-sized businesses.
A BOP generally combines the following types of coverage in one convenient bundle:
Although a BOP is a convenient insurance option for small to mid-sized business owners, it does not cover professional liability, auto insurance and workers’ compensation. Workers’ life, health and disability coverage is also excluded. For those exclusions, business owners can purchase separate insurance policies. Other examples include the following:
Businesses that have the following characteristics are ideal candidates for a BOP:
The following types of businesses frequently purchase BOPs to protect from losses not covered by general liability insurance:
Small to mid-sized businesses need to meet specific criteria to be eligible for a BOP. When determining eligibility, insurers consider factors that include the type of business, sizes of its primary location, class of business and revenue.
Premiums for BOP policies are based on eligibility factors, as well as financial stability, building construction, security features and fire hazards.
When purchasing business insurance, it is important to obtain the right amount. Contact Business Insurance California for guidance as to whether a BOP is a logical choice for your business.