leaf graphicA Business Owners Policy (BOP) can be referred to as a homeowners policy for your business. Since they were developed over 30 years ago Business Owners Policies have become an important part of running a small and medium-sized business. Business Owners Policies combine the basic coverages needed by most businesses into a package with lower premium costs than if purchased separately. Combining the services not only saves you money but makes things more simplified by having all your coverage in one place instead of having a collection of small policies The efficiency allows insurance brokers to offer lower premiums for packages.

Excluding auto and worker’s compensation insurance, a Business Owners Policy provides coverages needed by small and medium-sized businesses. Business Owners Policies normally consist of property coverage, General Liability Coverage, and some additional types of coverage that your business will require.

A Business Owners Policy could Include:

  1. Property Insurance
  2. Business Interruption Insurance
  3. Casualty or Liability Insurance
  4. Crime Insurance
  5. General Liability
  6. Borrowed or Rented Vehicle Coverage
  7. Business Income Extra Expense Coverage

Are You Eligible For a Business Owners Policy?

Criteria for a Business Owners Policy are liability Limits, property size, nature of the business, and actives performed on other properties. Along with your business finances business location, security, construction quality, and fire prevention, the above factors contribute to your Business Owners Policy.

Business eligible for a Business Owners Policy:

Habitational

  • Apartment
  • Residential Condo Associations
  • 1-4 Family Rental Dwellings
  • Mixed Use

Office

  • May not exceed 6 stories in height
  • Total floor area must not exceed 100,000 sq ft.

Restaurants

  1. Total Floor area must not exceed 7,500 sq ft
  2. Alcohol sales cannot be greater than 25% of total sales
  3. Annual gross sales must not exceed $3,000,000 at any insured location
  4. No liability coverage available

Warehouse

  • Solely for private storage of insured’s goods
  • Self-storage used to store property of others

Wholesale

  • Total floor area must not exceed 25,500 sq ft
  • No more 25% of total floor area can be open to public
  • No more 25% annual gross sales from retail operations
  • Annual gross sales must not exceed $3,000,000 at any insured location

Businesses with up to 100 employees are generally candidates for a Business Owners Policy. Depending on the insuring company, eligibility requirements may vary. Normally retailers such as furniture stores, clothing stores, hardware stores, and offices are candidates for a Business Owners Policy but can be restricted based on size and type of property.

The following businesses are generally not eligible for a Business Owners Policy:

  1. Automotive
  2. Bars
  3. Manufacturing
  4. Single or double family dwellings
  5. Places of entertainment
  6. financial institutes

Do you have about Business Owners Policy (BOP)?

To find out how your company can save time and money, speak to a Business Owners Policy specialist at 1-800-329-2040.

 

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