Business Owners Policy

Anyone that owns a business, whether it is an office, storefront, warehouse or home based business, has certain risks to be aware of the minute they open for business. Every customer, client, prospect, employee or even former customer can be a potential lawsuit waiting to happen. Most everyone has heard of restaurant claims and scalding coffee lawsuits where the claimant won a significant settlement.  While many claims are without merit, anyone can make a claim and defense costs can often be significant.

For many businesses, slip and fall claims are a significant risk but there are many other risks presented to the business owner that must be mitigated.   Any property that is owned by the business is subject to damage by various perils such as fire, windstorm, lightning strike or burglary.   The most common and economical way to mitigate these risks is by purchasing a Business Owner’s Policy (BOP) from a reputable insurance company.

A typical BOP is structured as a package policy, containing:


  • Property coverage (building)
  • Business Personal Property coverage (your stuff inside your business)
  • Liability coverage
  • Business interruption coverage
  • Employer Practices Liability coverage
  • Equipment breakdown
  • Property of others
  • many more by way of endorsement

The Business Owner’s Policy is similar to a homeowner’s policy in the way it delivers comprehensive coverage in a packaged policy format. Furthermore, it can be endorsed to offer additional coverages that are particular to your type of business. Purchasing the appropriate limits of liability may also depend on your type of business and the number of customers you service however; skimping on this coverage can lead to financial devastation. In most cases, a business owner has put up significant capital to start their enterprise.  When you consider this investment, consider also that a single claim could cause you to lose everything if you are uninsured.  The best plan is to transfer the risk to an insurance company.

When purchasing this important insurance, make sure you do business with a reputable and experienced agent who is going to place your business with a highly rated insurance carrier.  Remember that not all agents are in a position to provide you with the best service, and not all insurance companies offer the best coverage for you and your business.

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