Business Owner’s Policy (BOP)
Businesses are expensive to operate. Daily challenges can affect a company’s operations, elevating its risk potential. A business owner’s policy (BOP) can safeguard a company, enabling it to remain operational with its assets protected if something happens.
Whether it’s a fire, theft or another covered loss, a business owner’s policy (BOP) can help keep your business operational while also protecting your assets.
What Is a Business Owners Policy?
Small- to mid-sized businesses can benefit from BOPs. Typically, a BOP combines vital insurance coverages into a single business insurance policy. The coverage usually includes:
· Commercial property insurance may cover losses to your property from everyday hazards. Coverage may include protecting office equipment, furniture, inventory, machinery, raw materials, computers and anything vital to your business’s operations.
· General liability coverage may cover your business’s legal responsibility for any harm you may cause to others up to your policy limit. It may also cover legal fees and medical bills if your business injures someone.
· Business interruption coverage may help cover expenses such as salaries or taxes if your business needs to temporarily close and isn’t operational after a covered loss.
You can supplement a BOP with additional coverage, such as commercial auto insurance, employees’ health insurance and workers’ compensation. More specialized coverages, including policies for data breaches or business income for off-premises utility services, are also available. Lohman Companies can review your current insurance coverage to ensure you have appropriate protection.
Who Is Eligible for a BOP?
If your business has the following characteristics, you may benefit from a BOP if you have:
· Assets that can be stolen, including products, cash, furniture and digital property
· Operations in a physical location, whether that’s home-based or outside the home
· A high level of risk for lawsuits
What Isn’t Covered By a BOP?
A BOP doesn’t usually cover professional liability, auto insurance and workers’ compensation. Workers’ life, health and disability coverage are also usually excluded. You can purchase separate insurance for these coverages.
Other coverages you may also want to consider include:
· Crime coverage may cover losses resulting from a crime, such as employee dishonesty and fraud.
· Cyber coverage may help remedy the following losses resulting from cyber incidents:
o Legal costs from associated lawsuits
o Extortion and ransom payments
o Hiring crisis communication consultants
o Notifying impacted individuals
o Replacement of lost income
· Errors and omissions (E&O) coverage may help if your business provides services to clients. Your customers can sue if they believe they were harmed because your company didn’t do its job correctly.
If you’re found legally liable, E&O coverage may pay up to your policy limit, and it may also cover your legal costs.
How We Can Help
For more than 50 years, Lohman Companies has offered the highest quality, leading-edge financial products and services to our customers. We can help you decide whether a BOP makes sense for your business. Call us today