A business owner policy (BOP) is often marketed as the answer to all of your business insurance needs. A BOP is able to cover a wide variety of businesses and their associated risks. However, it doesn’t cover everything.
What Does a Business Owner Policy (BOP) Cover?
A business owner policy covers damage to your physical assets. If your building and its contents get damaged in a storm, fire or other covered disaster, a BOP will pay to replace the property. This includes property that is stolen.
A BOP also gives you liability protection against lawsuits. If someone is injured on your property and sues you, your insurance will cover your legal losses up to the policy limit. A BOP also covers lawsuits for libel, slander or false advertising.
Lastly, a BOP gives you some business interruption insurance. If an accident forces you to shut down your business, your insurance will pay for your company’s overhead and will also compensate you for your lost profits. With this complete combination of benefits, it is not wonder why many business owners assume a BOP is the only insurance they need.
What Other Business Insurance Might You Need
A BOP misses several important business risks. The most glaring gap is that it does not cover professional errors or negligence. If you make a mistake with your work, such as malpractice for doctors, you will get no liability protection from your BOP. Professionals should buy additional liability coverage to protect against these lawsuits.
A business owner policy only gives limited business interruption coverage. If your business shuts down for an extended period of time, you could get into financial trouble when your BOP runs out of money. By investing in business interruption insurance, you won’t have this problem.
Business owner policies also exclude damage from floods. If you are in a part of New Hampshire that floods regularly, you might need flood insurance on top of your BOP or other policies.
To make sure you are completely protected, contact RW Insurance for a free consultation. We will make sure you have the right combination of business insurance to protect your company and your bottom line.
