Insuring your business with a BOP
The Business Owners’ Policy or BOP provides coverage for property, liability and hired auto (e.g., rental cars, borrowed cars).
The Property section of your Business Owners’ Policy (BOP) provides protection for your building and contents. The BOP repairs or replaces items damaged due to a covered loss in a building that you own or rent for your business.
The list of items covered by a BOP typically includes:
1. Inventory
2. PCs
3. Equipment owned or leased
4. Furniture and Fixtures
5. Money or securities
6. Personal Belongings
7. Property Being Held for Someone Else
8. Records
The BOP also provides liability insurance to protect your business in case you’re sued. The BOP liability section includes coverage for personal injury, bodily injury, property damage and (often) advertising injury.
The BOP excludes Wear and Tear, Mechanical Breakdown, Pollution, Nuclear Contamination, Flood and Earthquake. Detached buildings, signs and fencing are most likely excluded from your BOP but probably can be added on to the policy or covered by a separate insurance policy.
Company cars owned by your business should be insured separately from your BOP.
Other coverages may be included or added on to your BOP depending upon your line of business.
What Should You Add to Your BOP?
· Crime coverage- for theft and employee dishonesty;
· Errors & Omissions (E&O)- Protects you from catastrophic claims due to negligence;
· Mechanical Breakdown- Losses resulting from equipment breakdown;
· Extra Expense- Costs to get your business up and running again ASAP after a loss.