As a convenience, many insurance companies offering business insurance policies sell combined protection from several of the major property and liability risks that business owners face. The business owners policy (BOP) is a package purchased by plenty of small and mid-sized businesses that was created for companies that will potentially face the same types of exposures and degree of risk. Larger companies might consider a commercial package policy (or customize their policies) to meet the special risks that they face.
Insurers, MGAs and Program Administrators use a rating system that enables them to calculate and provide their agents with the best rates to then present to their customers. The rating system analyzes the different rates currently available and allows for the quickest insurance solutions for all parties.
A BOP generally includes property insurance for buildings and contents owned by the company. There are two different forms, standard, and special, which provides more comprehensive coverage. A business interruption policy is generally included, which covers the loss of income that could result from a fire or other catastrophic event that disrupts the business for any length of time. It will include any extra expense associated with having to operate out of a temporary location.
Liability protection is another important feature and covers the company’s legal costs when a claim is made for any harm that was caused to others. This includes any injury or loss as a result of actions that a business owner, representative, or employee does, or fails to take, in the course of 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, worker’s compensation, or health and disability insurance. These require 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 insurance is a risk not worth taking.