The Business Owners Policy, also known as the BOP, can be the key to protecting any small business. Comprised of some forms of coverage that are typically purchased on your own, the Small Business Combination Plan offers discounted business premiums as you benefit from better insurance coverage.

What does the Standard Policy for Business Owners provide? This commercial policy usually consists of:

• General liability coverage

Commercial liability insurance helps a business owner if a client is injured on the property and demands their medical attention. Coverage extends to hospital and medical costs, as well as defense costs. It can also benefit the business if there is “publicity damage” related to claims such as copyright infringement, libel, and defamation.

• Property coverage

Commercial property insurance is also often referred to as designated peril insurance, open peril insurance, or special insurance. This can cover the owner in the event that there is property damage with respect to a rented space or premises that the business owner actually owns.

• Business interruption coverage

Business interruption insurance helps the insured when there are rain, wind or snow storms, hacking and / or other universal events that interrupt the normal operation of the business. The insurance will pay for the business loss or finance the use of other transitory property while the business operates until the permanent site has been repaired.

The great advantage of having a business owners policy is that the standard coverage can be tailored to your individual needs as a small business owner. After an evaluation with an experienced independent agent, you will be guided to determine what other types of coverage follow your industry, size of operation and profits and that would benefit you and your business by being included in the policy. Also, your agent can schedule regular times for the reassessment if your needs have changed and add or subtract various forms of coverage based on the assessment so that you have protection when you really need it.

Take a look at this scenario to understand what a related custom policy might mean.

A one-man business operation grew to include a few more employees. The man’s insurance specialist discussed the growth with the business owner and together they determined that a workers’ compensation policy, as well as disability insurance, should be added to the standard offerings. This met government requirements and gave the business owner the added protection they needed in the event that an employee was injured on the job.

To learn more on the subject, be sure to speak with an experienced independent insurance agent.