The business owner policy (also the policy of business owner, business owner policy or BOP) is a special type of commercial insurance designed for small and medium-sized businesses. By integrating general liability insurance and property insurance into a single policy, BOP usually offers lower premiums, often making it a more cost-effective option than a separately purchased policy.
The specific coverage included in the business owner policy varies among insurers, but most policies require businesses to meet eligibility criteria to qualify.
Video Business owner's policy
Standard Coverage
Typical business owner policies include property and liability insurance.
The property insurance portion of the BOP is available most often as named-per-name coverage, which compensates only for damage caused by events specifically mentioned in the policy (usually fire, explosion, wind damage, vandalism, smoke damage, etc.). Some BOPs offer open disclosure or "all risk" coverage; this option is available from a "special" BOP form rather than "standard". The types of properties covered by BOP typically include:
- Buildings : Place of business, addition, and additionally held or rented in progress, outdoor equipment.
- Personal business properties : Any item held by business owners or businesses or owned by a third party but temporarily stored in the care, custody, or control of the business or business owner. To be covered by BOP, business properties must be stored or stored in proximity to specific business locations (for example, within 100 feet of the place).
In addition, many business owner policies include business interruption insurance as part of its property coverage. Business disruption insurance provides up to 12 months of incomes for closed business when they are forced to close operations due to a closed property event.
The liability portion of the business owner's policy offers coverage for third parties suffering bodily injury, property damage, personal injury or personal injury in a closed business place or caused by business owners or employees. This coverage usually takes the form of compensation for legal costs associated with third party litigation of the incident (including attorney's fees, settlement and court costs). In addition, BOP liability coverage may include compensation for injury-related medical expenses to a third party in a closed place of business up to one year after the incident occurred. In addition to standard coverage, most insurance providers offer additional or optional support on business owner policies that business owners can use to tailor policies to their specific needs.
Maps Business owner's policy
Exceptions & amp; Optional Coverage
The business owner policy does not include the following types of insurance:
- Liquor liability insurance for businesses that sell or produce alcohol.
- Professional liability insurance
- Workers' compensation
- Health insurance
- Disability insurance
- Automatic insurance
Many insurance companies offer businesses the option to customize BOP based on specific coverage requirements. Approval of optional properties that can be added to BOP includes protection for certain crimes, decay of merchandise, computer equipment, mechanical damage, forgery and loyalty, but the coverage limits for inclusion are usually low.
Feasibility
Business owner policy is not available for every business. Eligibility requirements vary among insurers, but typically include limits for:
- Business class (eligible classes include small restaurants, retail stores, apartments, office or service businesses, wholesale distributors and contractors).
- Locations of the majority of business operations (most BOPs require businesses to complete primarily on-site business).
- Size (area) from the main business location.
- Revenue.
References
- http://www.investopedia.com/terms/business-owners-policy.asp
Source of the article : Wikipedia
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