A Business Owners Policy (BOP) is essential insurance coverage for any small business.
Whether a firm rents, owns a building or works out of their house; a firm needs a BOP. Professional liability insurance only covers errors and omissions. A malpractice claim can be devastating to an uninsured firm, but claims arise from the business side.
A BOP covers many business insurance exposures that are not covered by malpractice insurance. Even for a sole practitioner that rents just a desk, a BOP is essential. Just because your landlord doesn’t require property and casualty insurance coverage proof, does not mean you do not need it.The BOP may insurance coverages for:
1. Property Insurance (Building and Business Personal Property)
2. Damage to other leased property
3. Crime Insurance
4. General Liability Insurance (not the malpractice insurance)
5. Business Interruption Insurance
6. Hired Non-owned auto
7. Sewer Water Backup
8. Cyber Insurance (Can sometimes be added)
For cyber or crime exposures, firms may may need additional policies for these exposures if they cannot get the limits and coverage needed under the business owner’s policy. If higher liability limits (not malpractice insurance) are needed, a commercial umbrella insurance policy can also be added.
If you work out of your home, make sure you have a properly endorsed homeowners policy for business exposures preventing coverage gaps.
Lee Norcross, MBA, CPCU, CPIA
Managing Director, CEO
(616) 940-1101 Ext. 7080