Business owner’s policies (BOPs) are typically insurance packages that provide both property and liability coverage at one premium. BOPs are available to most small and medium-size companies and can be an affordable alternative to purchasing separate policies for liability and property insurance.
BOPs include property protection for an office building and its contents as well as other people’s property brought into the office building. BOPs cover standard hazards, including fire and theft. However certain exclusions apply, such as damage caused by earthquakes and floods.
How much insurance do you need? In regards to a BOP, a business should select the amount of liability coverage it needs based on its assets. Liability coverage will pay the expenses of a lawsuit should the business be sued for injury or property damage. The liability policy will typically also pay the medical expenses of those injured, other than employees, as a result of business operations. Businesses may also purchase add-on coverage based on the particular risks associated with the company and their type of business.
Talk to an insurance agent or broker who can assist you in identifying your risks and determining the type of coverage needed to fully protect your business.