Business Owners Insurance Policy
A business owner policy (BOP) is a unique insurance type designed to protect major physical assets of a business, and also cover the business against liability risks. Business owner’s policy is sold is offered by property and casualty insurance companies and offers multiple types of coverage. Depending on the degree of physical damage to a commercial property or lawsuit from injured third-party, some events are capable of bankrupting your business, if you lack reliable adequate insurance coverage. As a small or medium-sized business owner, your needs for business owner’s insurance cannot be overemphasized.
Why Do I Need Business Owner Insurance Policy?
Business owner policy has two packages combined in one policy, as it covers both commercial property and general liability. Damage to property and equipment, a lawsuit from third-party, and lack of working capital are three major factors that mostly affect the general performance of a business. These three crucial factors are what business owner policy covers as follows:
Commercial Property Insurance
Commercial property insurance protects your business against any damage to its physical assets due to vandalism, theft, fire or any kind of accidental damage. Your commercial building, equipment and fixtures are some of the properties generally covered by this product.
Liability Insurance Protection
Liability insurance covers any legal responsibility your business is held for as a result of harm done to others. This could be financial loss, bodily injury or property damage to third-person as a result of the failure or errors from your business activities.
Business Interruption Insurance
If regular business activities are interrupted as a result of mechanical breakdown, fire or vandalism, theft or a covered disaster, a company without a reliable financial protection may be forced to slow down or stop operations. With business interruption insurance, the effects will be mitigated, and your company will be well protected. The coverage usually includes the income lost for that moment of interruption and the extra cost of operating from a temporary location.
How to Get a Business Owners Insurance Policy
Before buying a business insurance policy, the following are some of the things you need to consider:
As with other insurance types, BOP eligibility is determined by specific criteria, depending on the company and the product. Generally, for a business to be qualified, the requirements include:
- Having less than 100 employees
- The building size must not exceed 100,000 square feet or six stories if it is an office
- The building size must not be larger than 35,000 square feet if it is for wholesale, mercantile, or processing
- The annual revenue must be more than $1 million
- The business must be in a low-risk industry.
Talk to a Business Insurance Broker
Just like every other important financial decision, you must do your due diligence and grasp the concept of how BOP works for your business line. An insurance borker, preferably, an expert in the business insurance policy will help you have a better understanding of it and guide you on how to buy and make the most of your business owners policy.
Free Businessowners Policy Insurance Quotes
To save money on your business insurance policy, call Safepro Insurance Services and speak to a commercial insurance broker.