What is Not Included in a BOP?

As a small business owner, you may already be familiar with a business owner’s policy, commonly known as a BOP. If you’re not, it’s essentially a bundle of the most common business insurance coverages conveniently packaged into one policy with one premium to pay. Not only is it easier to manage than multiple policies, but it’s generally more affordable as well.

BOPs are generally written as all-risk policies, which means that the insured business is protected against a wide variety of losses, including fire, severe weather, theft and vandalism. In fact, you’ll be protected from any loss except those that are specifically excluded from coverage. Why would coverages be excluded?

There are quite a few losses that present minimal risk to your business. For instance, your business may never face a nuclear hazard or an earthquake. Rather than paying for coverage that you aren’t likely to use, those losses are simply excluded. However, you can also add coverage to your BOP for risks that you’re more likely to face, such as floods.

Common exclusions include:

Normal wear and tear

Flooding and sewer backup

Earthquakes

Animal or insect damage

Power failure and/or computer system/equipment malfunction

Loss of market

Intentional illegal acts committed by the policyholder

Internal fraud

Pollution

Nuclear hazard

Military actions/government operations

How can you customize a BOP to best meet the needs of your business? Your independent insurance agent can help get you started today.

Protect your livelihood. Call Buschbach Insurance Agency at (708) 423-2350 for more information on Oak Lawn business insurance.

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