Business Owners Policy
Risk Management
Our team of experts is dedicated to providing you with a comprehensive assessment of your risks and quote comparison from our broad network of insurers while ensuring that you have the essential knowledge to make informed decisions on Business Owners' policy insurance.
The Basics of a Business Owners Policy
A Business Owners Policy, commonly known as a BOP, is a package insurance policy designed to meet the unique insurance needs of most small to medium-sized businesses. A typical Business Owners Policy combines general liability and commercial property insurance for businesses such as restaurants, retail shops, and manufacturers.
BOP insurance is generally an excellent option to fulfill most small businesses' insurance needs. However, it's unavailable to large organizations or companies with more complex insurance needs. Instead, a commercial package policy would better fulfill the insurance needs of larger organizations and businesses.
With a business owner’s policy, you can protect your business from financial losses resulting from liability, property damage, and business interruption. The costs associated with a Business Owners Policy will vary depending on the size of your business and the amount of coverage your business needs.
A Business Owner's Policy offers many benefits for small businesses, including:
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Cost-effective: BOP insurance is usually one of the most cost-effective ways to insure your business because property insurance and liability insurance are bundled together with discounted pricing. Purchasing these coverages separately may result in higher premiums.
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Flexibility: A BOP offers flexibility regarding how much coverage you need and what deductibles you can afford without sacrificing the basic coverages your business needs to be protected from various risks.
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Personalization: BOP insurance can be tailored to meet the needs and risks of your business. Since each business is unique, it is essential to speak with a CPK insurance professional to make sure you have the right coverage in place for your business.
Key Coverage Provisions
Business owner's policies (BOPs) can help cover the property and liability insurance needs of small businesses. A business owner’s policy combines business interruption, property, and liability coverage into one affordable policy. Because these policies are designed for smaller, low-risk businesses, they're typically less expensive than a standard commercial package policy (CPP). A typical business owner's policy coverage includes the following;
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Property insurance: A typical BOP provides property insurance to help pay for the repair or replacement costs of your building and its contents in the event of a loss. Coverages can include fires, severe weather, theft, and other events up to the limits specified in your policy.
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Liability insurance: Business owner's insurance includes liability protection if you are sued for causing personal injury or damaging another person's property. This part of your BOP will help cover the cost of legal defense and any judgment against you in court.
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Business interruption insurance: If you experience a loss that shuts down your business temporarily, this will help replace lost income while your business is inactive. It can also reimburse you for extra expenses incurred during the recovery process.
A BOP is typically available to small businesses in low-risk industries. Suppose you're in a more high-risk sector or need specialized coverage. In that case, a CPK Insurance advisor can help minimize your risks by recommending personalized insurance solutions based on your unique insurance needs.
What’s Typically Not Covered?
Business Owners' policies are perfect for small and medium-sized businesses. However, there are some things that a business owner's policy generally does not cover. These coverages would require an endorsement or a separate policy:
Professional Liability: Professional liability insurance covers you from client allegations of negligence, errors in services given, and omissions.
Worker's Compensation: Worker's compensation insurance helps provide medical care and wage replacement for injured employees.
Health Insurance: Health insurance provides coverage for health care expenses incurred by an employee or their family members.
Disability Insurance: Disability insurance helps provide an income if an employee cannot work due to illness or injury.
Other exclusions include:
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Business interruption due to poor economic conditions
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Contract penalties
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Damage to property owned by your business but located at another site
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Injuries to workers not covered by workman's compensation insurance
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Intentional acts or omissions by owners or employees
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Additionally, a BOP will not cover events like floods and earthquakes
Business owners' policy coverage can vary by carrier. It is essential to be aware of what types of events are excluded from your BOP. An advisor from CPK Insurance will be able to provide what is excluded from your policy and recommend coverages so you know when it is necessary to purchase additional coverage.
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