Each business venture is faced with a set of risks and exposures that could create serious financial strain in the event of an accident or incident. For this reason, many companies choose to carry commercial liability insurance. However, some small businesses feel they are immune to these situations or do not feel comfortable spending the money for comprehensive coverage. A business owners policy, more commonly known as a BOP insurance policy, is the solution for the small to mid-sized business.
This policy is a combination of a commercial general liability and commercial property policy. One of the prime benefits of choosing a dual-duty policy is cost. It is more affordable to have these services bundled. A combination policy will offer the same coverage as the other two separately, protecting a business from:
- Property investments like building, furniture, inventory or signage
- Loss of accounts receivable
- Destruction, relocation or storage of important documents and papers
- General liability in the event of customer/client harm
- Legal defense costs in the event of a lawsuit
- Loss of income assistance related to incident or damage
A BOP insurance policy offers the same limits and deductibles as other commercial policies, but if your business has special risks, there may still be a gap in coverage. With a BOP, there is still flexibility to add secondary coverage options without breaking the bank.