A package of different types of business insurance is usually called a business owner’s policy, or BOP for short. Typically, insurance providers have different packages for businesses of different sizes. Small- and medium-sized companies are usually able to take advantage of this sort of protection, which works out to be somewhat cheaper and much more convenient than purchasing coverage options separately.
What is Covered by a BOP?
Some commercial insurance providers allow a certain amount of customization with policies, so there isn't just one set of coverage options that can describe every product sold by every insurer. However, these options are typically included in a business owner’s policy:
- Property: This protects the company's buildings and the contents within those buildings.
- Liability: This helps companies handle claims that employees or owners caused injury or property damage to other people.
- Business interruption: This type of coverage helps make up for income that is lost because of a covered hazard. In some cases, it may provide funds to help a business relocate after a total loss.
These basics—property, liability and business interruption—are really only the first kinds of coverage that most businesses should consider. It's just as critical for owners and managers to consider some very common types of risks that may not be covered by a typical BOP. These may include:
- Professional liability: Professionals who offer services or advice to clients should purchase this coverage in the event of an error that costs a client.
- Cyber liability: While a BOP may cover a company's computers and electrical equipment, it is not likely to also protect businesses from the loss of data or brand reputation caused by a hacker or other data breach.
- Commercial auto: Cars, trucks, vans and other vehicles are not included in the property coverage portion of a BOP; they must be covered separately, in accordance with state law.
Besides the items listed above, BOPs also may not provide workers compensation and employee benefits. Again, insurance providers may offer some niche products that are aimed at specific types of businesses. They may also allow their customers to customize their protection for their own needs. However, few businesses can rely solely upon a BOP for all of their insurance needs. Owners and managers can sit down with an independent insurance agent to analyze their own needs and get the right coverage.
Get the right coverage today. Call Concise Insurance Services at 650-401-8800 for more information on San Mateo business insurance.
If you’ve ever had a packaged policy, let us know what you liked most about it in the comments section below.