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Understanding Your BOP Coverage

Before you shop for your next BOP, it’s vital to understand the basic types of business owners policy coverages. Your business owner insurance can be customized to meet the needs of your company as well as address common risks in your industries. Knowing the components that make up most BOPs can be useful as you consult with your insurance agent.

Liability and Property

Usually, a business owner policy is comprised of both liability and property coverages. In most cases, the property portion of your policy is geared to handle losses involving:

  • Company buildings
  • Contents
  • Personal effects located on the premises

While these are the general scopes of coverage, it’s also possible to include mobile property, papers, money, securities and even crime additions in your property policy.

Liability insurance in a business owners policy can be specifically created to deal with the usual kinds of risks for your industries. Basically, liability handles claims related to accidents and injuries on your premises, along with damages resulting from the actions of your employees or other authorized agents.

Essential Additions

Besides liability and property, many business owners policy coverages also include business interruption insurance to reimburse for losses that force your firm to cease operations. In most cases, payout of claims is intended to help you continue funding your payroll, utility expenses and other temporal functions while repairs or rebuilding occur. To understand how a BOP can help your business, it’s best to consult with your insurance agent.