Businessowner policies, or BOPs, are a package of coverage purchased together typically at a lower rate then if a business where to purchase each coverage separately, as in a commercial package policy. This types of policies were designed to the benefit of both insurance companies and their customers. Bundling the coverage's together allows the insurance companies to streamline and simplify underwriting. The savings are shared by the insurance company and the policyholder.
Not all business qualify for a business owner's policy but some of the common types of business that do are:
- Restaurants & cafes
- Retail stores
- Barber shops and salons
- Sports and Fitness Studios
- Small artisan shops
- Light manufacturing
- Professional Offices
-General Liability: Helps you is you are sued. It covers your legal defense as well as any settlement up to the coverage limit.
-Additions and Alterations: For business owners that rent their business location, such as a retail store or restaurant, you need to add the finishing touches to the property to fit your needs. This includes things such as built-in shelving as display cases and major kitchen appliances that are permanently installed.
-Business Property: For business owner that own the building or unit they operate out of, a BOP can include the coverage for the structure.
-Business Personal Property: This is coverage for contents such as inventory, detached display cases, retail terminals, office furniture etc.
-Business Interruption: This coverage compensates the insured for the loss of income caused by a covered event such as fire or water damage. It would replace the income that the insured typically received from normal business operation had the loss not occurred.