If you own and/or run a smaller business, your insurance needs may be properly handled by a businessowner policy (BOP).
A BOP is a single form that offers both property and liability protection. Retailers, wholesalers, small contractors, artisan contractors, dry cleaners, restaurants, offices and convenience stores (including those with gas pumps) are eligible for BOP coverage. All such operations may be insured by a BOP as long as they do not exceed the square foot or annual sales limits established for the program. Cooking operations, due to the higher fire and other accident exposures, have significantly more restrictive guidelines.
BOPs protect buildings as well as the following:
- Building additions (completed or being built)
- Indoor and outdoor fixtures
- Clothes Dryers
- Machinery and equipment
- Landlord furnishings
- Mowers, ladder, snow blowers, and similar maintenance property
- Outdoor furniture
- Floor coverings
- Refrigerating appliances
- Ventilating appliances
- Cooking appliances
- Dishwashing/Drying appliances
- Clothes washers materials, equipment, and supplies
- Temporary structures located near the insured premises
The policy's protection for business personal property (such as office equipment, copiers, desks, etc.) applies whether the property is located inside or immediately outside the covered buildings. The category also includes property you own, lease or control (i.e., borrow or control) as long as the property is used by the business.
One item of importance, the BOP does NOT provide coverage for loss of use of damaged or destroyed property, nor for loss created by an actual or perceived loss in value of goods after a loss takes place.
A BOP's liability coverage provides comprehensive protection for claims or suits made by other parties. Specifically it covers losses involving injury to other persons or damage to property that belongs to others. It also provides limited protection against personal injury (slander or libel), advertising injury and losses involving an operation's products or services.
Naturally, there are certain situations that are not covered by a BOP. For instance, there is no coverage for losses involving most vehicles, money and securities; illegal property (contraband), land, water, growing crops or lawns; or watercraft.
A BOP may be supplemented to provide additional protection. Property coverage options include adding insurance for accounts receivable, valuable papers and records, earthquake, spoilage, etc. Liability coverage can be expanded to handle additional business interests, limited vehicle liability, losses related to personnel situations, liquor liability and injuries to leased employees.
A BOP may be the answer to your company's coverage needs and it may be worthwhile to get more information on the BOP from the nearest insurance professional.
The following protection can be selected under a BOP:
Payment is available for direct physical loss or damage to outdoor signs at the described premises. Eligible signs may be owned by the named insured or owned by others but be in the named insured's care, custody, or control.
Money and Securities
Coverage applies to loss of only the named insured's money and securities used in its business while that property is at banks or savings institutions, inside the named insured's living quarters, inside the living quarters of a partner or employee, at the described premises or while in transit between the places referenced.
The policy pays for direct loss of business personal property and money and securities due to dishonest acts its employees commit, whether they act alone or collude with others to do so.
Equipment Breakdown Protection Coverage
Coverage is available for loss or damage directly caused by or that results from electrical failure or mechanical breakdown to covered property. Covered property is electrical, mechanical, or pressure machinery and equipment.
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