Shanu Singh Guliani

Protect Your Business with a BOP
April 1, 2007

You’ve just located the perfect space…the size is right, there’s tons of foot traffic, plenty of parking, and the rent is unbelievably affordable. You’ve signed on the dotted line and now you’re ready to open the doors to your dream business… but wait, before you unlock those doors get your document ducks in a row and protect your business with a Business Owner’s Insurance Policy (BOP).

Basically, three types of insurance are available to protect your business:

• Property
• Liability
• Workers’ Compensation.

Business owner’s policies (BOP's) are insurance packages that provide both property and liability coverage at one affordable premium. These packaged policies are available to most small and medium-size companies and can be a good alternative to purchasing separate policies for liability and property insurance. Although, property and liability insurance are not always mandatory, it makes sense to protect all your company assets with property and liability insurance.

1. Property. This insurance covers your property in the event of theft or damage caused by fire, explosions, accidents, or acts of nature. In terms of property, some policies also cover basic equipment (building structure, furniture, inventory, equipment, and supplies).
2. Liability. The General Liability insurance coverage of a BOP is comparable to a typical Commercial General Liability (CGL) policy, providing protection against claims of bodily injury or property damage for which your business may be liable. The liability policy also pays the medical expenses of those injured, other than employees, as a result of business operations.
3. Workers’ Compensation. Workers’ compensation insurance covers injuries and occupational diseases picked up at work. Fault doesn’t matter; employers are liable even if the employee may have contributed to the injury or illness. It’s required in almost every state, and specifics vary from state to state.

For small business owners, combining general liability insurance and property insurance into a single business owner insurance policy is a less expensive alternative than purchasing both policies separately. An insurance agent or broker can help you identify risks and determine the type of coverage needed in order to fully protect your company.

Posted by Shanu Singh Guliani on April 1, 2007 | Comments (0)