A business owner’s policy (BOP) is a packaged insurance product. It combines the offerings of general liability coverage and property protection coverage into a single insurance policy. Buy one policy instead of two and save money!
A business owner’s policy (BOP) provides the usual general liability protections: client or customer sues you for injuries or property damage. It may help pay for an attorney, legal fees, medical costs of the hurt client, and advertising. Plus additional property protections. Property protections include repair or replacement of damaged or destroyed buildings, inventory, equipment, furniture, and fixtures.
Data breach coverage provides protection if a client or customer’s personal, sensitive, or confidential information may have been released. This coverage pays the costs of notifying affected people, the costs of credit monitoring services, and the fees of a public relations firm, in case you have to rebuild your reputation. It can be added on to a business owner’s policy or issued as a standalone policy, depending on the risks of your business. The more customers you have, and therefore, the more data you keep, the higher the risk, and the more likely the need for a standalone policy. Data breach risks are often overlooked. Paying for data breaches is no small feat.
This is dependent of the type of business and coverage options, but, generally between $500 – $1000, annually.
The property damage liability deductible is the amount a policyholder has to pay out of pocket before an insurance provider may cover the costs of a claim involving other’s property.
The property damage deductible is the amount a policyholder has to pay out of pocket before an insurance provider may cover the costs of your property damage claim.
Non-owned auto and hired auto insurance will not cover incidents that occur during personal errands or while commuting.
Non-owned auto and hired auto coverage protects your business if you or your employees cause injury or property damage while driving a vehicle that does not belong to your business. This insurance may pay for attorney’s, legal fees, and medical costs. If you tend to periodically rent a vehicle or regularly ask employees to utilize their vehicles to keep your business moving, non-owned auto and hired auto coverage is for you.
Non-owned auto and hired auto coverage is best for those businesses that rent or lease vehicles, or ask employees to use their own vehicles to assist with the business. Remember, and this is really important…commercial use of your personal vehicle is likely NOT covered under your personal auto policy. Make sure you keep this in mind when deciding on auto coverage for your business.
General liability vs. business owner’s policy (BOP). The big throw down! Actually, not really – this should be pretty straightforward. General liability insurance policies do not cover property risks. If your business rents or owns buildings, inventory, equipment, fixtures, or has employees, you should consider purchasing a business owner’s policy.
This is really dependent on the number of people you employ. In general, the more members on your team, the higher the risks, and the more likely the need for a standalone policy.
Liquor liability coverage provides protections when serving alcohol. If you serve liquor on your premises as part of your business, you need this coverage. Imagine you serve one last drink to a customer, let’s call him Mike, who after closing, drives his scooter right into his neighbor’s front door. Without liquor liabilty coverage, your business may be on the hook to pay the repair costs.
How does your rainy day fund look? Business interruption coverage is a cost effective safeguard to your livelihood, and overall, everyone likes a big umbrella…
Data breach risks are definitely underestimated. Paying for data breaches is no small feat. Credit monitoring typically costs $20 a month, per person! How many notification letters have you received in the mail? We’ve lost count. Cyber attacks are becoming common occurrences, with pricey ramifications.
This is dependent on the number of customers you have, the amount of data you keep, and the types of data your business collects. In general, the more you have, the higher the risk, and the more likely the need for a standalone policy. The short version…more = need more coverage…that really applies to all things insurance…
Business interruption provides lost income and covers expenses if your business is temporarily unable to operate.
Business owner’s policies are customizable! Depending on your type of business, different coverages can be added to make sure you are fully protected. Business interruption, data breach protection, hired and non-owned auto coverage, liquor liability, employment practices liability, and professional liability may be available options.
Limits describe the the amount an insurance provider will consider paying in connection with a claim. There are two limits to keep in mind, the amount that may be paid per claim and the total amount an insurance provider will consider paying in one year for all claims.
Yes, business owner’s policies (BOP) have a deductible. A $250 or $500 deductible is generally typical.
Employment practices liability insurance provides protection against the risks associated with hiring, firing, and employing workers and staff.
Employment practices liability insurance protects you from the risks of hiring, firing, and employing workers and staff. This insurance is useful if an employee or former employee sues you for issues like failing to promote, wrongful termination, or mishandling of benefits.
Stand alone employment practices liability policies generally cost between $1,000-$2000 annually. These prices are dependent on your business type and can reach up to $1,000 a year for riskier endeavors, such as working in construction.
A deductible is the amount a policyholder has to pay out of pocket before the insurance provider may cover the costs of the claim.
The major difference between a commercial auto insurance policy and non-owned auto and hired auto coverage is whether your business owns the vehicle. Own it = Commercial Auto. Short and Sweet.
The content provided on this site is solely informational and does not replace legal, professional, or regulatory advice.