Business Owners Policy - Coverage & Limitations (2020)

​Small businesses are not exempt from being subject to negligence or liability. Having a business owner's policy is essential in ensuring that the company grows uninterrupted in events like lawsuits, disasters, or threats. Most small and mid-sized business owners purchase business owners policy (BOP). This policy is created for small businesses for protection from all significant and liability risks in one package.

BOP Inclusions And Limitations

• Insurance for properties like buildings and belongings owned by the business
• Business interruption insurance in case of damage from a fire or other disasters that disrupt the business operations
• Liability protection covers the business's liability from harm that it causes others. 

Having a BOP Policy is essential and convenient. It combines business property and business liability insurance into one. There is a wide range of inclusions BOP has: 

• Commercial Property Insurance includes buildings, equipment, inventories, and furniture and fixtures. It also helps in covering losses of papers and records. 
• General Liability Insurance has broader coverage. The insurance helps in events like the business getting sued for harming a person or damage to others' property. It also helps in covering legal fees. 
• Business Income Insurance helps replace the loss of income in unexpected events that interrupted business operations resulting in a loss. This insurance may include benefits to employees and payroll dues. 
• Data Breach Coverage is essential, especially for businesses that handle private information because they are most at risk for a data breach. This coverage can also help pay for legal expenses in case of a data breach incident. 
• Professional Liability Coverage covers claims against the business regarding negligent acts or errors in its professional services. 

Insureds are reminded that BOPs have limitations and do not cover professional liability, auto insurance, and other standard insurances that a commercial package policy offers. 

Which Businesses Are Qualified For A BOP?
Different types of businesses like merchandise businesses, artisan contractors, or even convenience and grocery stores are qualified for a BOP. Many small to mid-sized companies ranging from apartments to restaurants are also eligible. 

Having assets that can be stolen or damaged is also a reason to get BOP. Some assets are difficult and costly to replace. With BOP, worries will be lessened, and pocket expenses will be avoided. Buying a BOP policy is more affordable than purchasing a separate property and liability insurances. Insureds can also add different coverages according to their liking and needs. 

At Arnold, Bruce & Doerfler Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (503) 222-1951 or Click Here to request a free quote.