A Business Owners Policy (BOP) is essential insurance coverage for small to medium sized businesses.
A BOP is a packaged insurance policy designed for small to medium sized businesses providing cost effective coverage. A BOP typically includes property insurance, general liability insurance (not malpractice) and business interruption insurance coverages. Whether a business rents, owns a building or works from home; you need a BOP. Professional services firms understand how important malpractice insurance is. But professional liability insurance only covers errors and omissions. While an uninsured malpractice claim can be devastating, claims do arise from the business side.
A BOP covers business insurance exposures not covered by malpractice insurance. Just because your landlord doesn’t require insurance coverage proof, does not mean you do not need it. The BOP may combine insurance coverages for:
- Property Insurance (Building and Business Personal Property)
- Damage to other leased property
- Crime Insurance
- General Liability Insurance (not the malpractice insurance)
- Business Interruption Insurance
- Hired non-owned auto
- Sewer Water Backup
- Cyber Insurance (In certain cases)
- Equipment Breakdown Coverage
- Inland Marine (for tools and mobile equipment)
- Employment Practices Liability (EPLI)
For cyber, crime insurance, and EPLI firms may need separate policies. Firms may find that needed limits and coverage under the business owner’s policy are not adequate. Or there may be policy and underwriting exclusions. For higher liability limits (not malpractice insurance) add a commercial umbrella insurance policy.
If you work out of your home a properly endorsed homeowners policy may provide adequate coverage. But a BOP may be a better alternative to fill in coverage gaps not addressed in a homeowners policy.
A BOP is an important protection piece for your insurance coverage puzzle.
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Lee Norcross, MBA, CPCU
California License # 0D87292
L Squared Insurance Agency, LLC ® DBA in California as L2 L Squared Insurance Agency, License # 0L93416
Managing Director, CEO
Lee@L2Ins.com
616-726-7080
