Business insurance can get complicated. Organizations need to protect themselves against damage to their property, income they may lose if they have to shut down after their property is damaged, and the risk of lawsuits.
With the risks of natural disasters, crime and other types of losses that separate policies cover, there can be a lot to keep track of.
BOP packages essential coverages into a single insurance policy. At its most basic, a BOP provides three broad coverages:
- Property Insurance for the business’s buildings (if it owns any), contents including inventory, furnishing and equipment, and other property used by the business.
- Business interruption Insurance for lost income resulting from a business shutdown following damage to the property or extra costs the company incurs to stay open after the damage.
- Liability Insurance covering amounts the business has to pay as damages to settle some lawsuits against it, as well as legal costs for defending against those suits.
BOPs offer some flexibility to the buyer, but not the overwhelming variety of choices that individual property and liability policies offer.
Enterprises can choose between insuring against a broad list of causes of property damage loss or “special” causes of loss. The broad form covers only the causes of loss listed in the policy; the special form covers all causes except those listed in the policy.
The special form costs more because it covers more.
The business must select the amounts of coverage it needs to protect its buildings and property.
However, it is unnecessary to select an amount of insurance for business interruption coverage. The policy simply pays for the actual loss the business sustains during a necessary shutdown caused by covered damage to the property.
BOPs typically include small amounts of coverage that would otherwise have to be purchased separately, such as:
- Loss or damage to valuable papers and records.
- Debts the business cannot collect because of loss or damage to accounts receivable records.
- Income lost when the business must shut down due to an interruption in computer operations.
- Some types of crime losses.
- Clean-up and removal of pollutants.
The policy covers the business’s legal liability for bodily injuries, property damage, advertising injury and some types of non-bodily personal injuries to others. Most insurers offer businesses a choice of only three or four amounts of liability insurance.
BOPs may be customized to include other types of insurance, such as for liability resulting from the use of autos the policyholder hires or borrows.
However, a BOP is not a substitute for an automobile insurance policy, and it does not include workers’ compensation coverage. Those policies must be purchased separately.
To qualify for a BOP, a company cannot exceed a certain size, such as 100 employees or $5 million in revenue. For those businesses that qualify, a BOP is a sensible foundation for their insurance programs.
BGES Group’s office, located in Larchmont, NY is a full service insurance agency offering, Property, Liability, Umbrella Liability, Business Auto, Bid & Performance Bonds, Inland Marine, Worker’s Compensation, Workers Compensation Premium Recovery, New York State Disability, Group Health, Life insurance, Personal lines and Identity Theft.
Special Contractor Insurance Programs (NY, NJ, CT) – We we have 60+ insurance companies to market your general liability, umbrella liability, business auto, workers compensation, bid & performance bonds and group health coverages. We help contractors set up proper risk transfer. If you’re a contractor we offer extensive information about insurance markets, coverages, risk transfer, subcontractor screening, ways to lower your insurance costs.
BGES Group are Worker’s Compensation Specialists for the States of New York, New Jersey and Connecticut – Issues we address: 1) Lowering pricing – we have specialty programs that can save you up to 40%; 2) Finding a new company; 3) Replacing policies that are being cancelled or non renewed; 4) Audit disputes; 5) Company creating fictitious payroll at audit time; 6) Lowering high experience modifications factors; 7) Misclassification of payrolls; 8) Lowering or eliminating renewal deposits; 9) Getting coverage when you’ve been without for a few months; 10) Covering multiple states under one policy; 11) Eliminating 10% service or policy fees; 12) Timely issuance of certificates; 13) Always being able to get someone on the phone or by email when you need to.
Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538
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