Owning your own business can be exciting and rewarding. However, as a business owner, your personal finances are closely tied to the success of your company. Given these stakes, you should prioritize suitable loss control measures, such as a versatile insurance portfolio. A business owners insurance policy (BOP) can provide you with a convenient and cost-effective solution.
What Does a BOP Cover?
BOPs can be attractive insurance options for small- and medium-sized businesses because they bundle several key types of insurance that may be suitable across various industries. In most cases, a BOP typically includes some form of the following coverages:
General liability insurance—This component of your BOP may provide financial assistance if your business is responsible for the bodily injuries or damaged property of third parties and may help pay for the following losses and expenses:
- Medical bills for third parties
- Property damage repair or replacement costs for third parties
- Your business’s legal costs
Commercial property insurance—This coverage may help pay for losses involving your business’s physical property, such as the following:
- Contents of buildings (e.g., equipment, inventory, furniture)
Business interruption insurance—If your company’s normal operations are disrupted or delayed, this coverage may render financial aid, such as for the following:
Note that specific coverage levels may vary by policy.
- Business rent and mortgage payments
- Lost or reduced revenue
- Employee payroll
- Tax and loan payments
Is Professional Liability Insurance Included in a BOP?
Professional liability insurance may be integral to your business’s loss control practices if you provide advice or services to your clients. Also known as errors and omissions (E&O) insurance, this coverage may help pay for financial losses and legal expenses if a client accuses your business of providing negligent, misrepresented, late or otherwise inadequate services.
Professional liability insurance is generally not included in BOPs. However, it may be possible for you to endorse your business’s BOP with additional coverages, such as professional liability insurance. Your licensed agent can help determine if this is an option or if you need to acquire a separate E&O policy.
What Factors Affect the Cost of BOPs?
Before being able to provide your business with an accurate quote for a suitable BOP, insurers must analyze your unique circumstances and operations, including risk levels. In general, the following factors may impact your BOP premiums:
- Business assets and property
- Number of employees
- Prior claims history
- Policy details (e.g., coverage limits, deductibles)
Get the Right Coverage
At RCU Insurance Services, our dedicated staff is well-equipped to help your business understand and acquire a suitable BOP. Our agents have the knowledge and experience to assess your insurance needs and craft optimal coverage. Visit our website or call 707-576-5115 to get started today.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.