| Business Owner's Policy (BOP) refers to the | | | | insurance separately. If you have property |
| insurance package, which is a combination of both | | | | insurance, you are entitled to get the |
| property insurance and liability insurance. The | | | | reimbursement for the losses to you business |
| reasonable price tag makes this option more | | | | property. You have two options to choose from |
| attractive for the small businesses instead of | | | | for property insurance. First is the Standard Form. |
| buying separate policies for property insurance | | | | In this option you will get compensation only if the |
| and liability insurance. Business owner's policy is not | | | | losses have occurred due to certain predefined |
| suitable for the large businesses because they do | | | | perils. On the contrary, if you choose Special |
| not fulfill the eligibility criteria for this policy. | | | | Form, then you policy will cover losses due to any |
| Insurance companies feel that large business | | | | reason. However, make sure that no peril is |
| involve greater amount of risk so they do not | | | | specifically excluded in the policy. Not only the risk |
| consider them for BOP. | | | | of your business property is covered, but the risk |
| Eligibility Criteria: | | | | of machines and plants permanently installed like |
| On the contrary, small and medium businesses | | | | air conditioners, business inventory, furniture, and |
| are suitable candidates for business owner's policy. | | | | also property stored at other sites. |
| Eligibility criteria for this policy are liability limits, | | | | If you have the liability insurance, then the |
| premises size, nature of the business and | | | | company will reimburse the amount if any visitors |
| activities performed offsite. These factors along | | | | get injured at you premises or any of your |
| with financial stability, location of business, security | | | | products cause an injury to the customer. You |
| measures, and quality of construction and | | | | can get some additional advantages by paying |
| possibilities of fire determine the price of the BOP. | | | | extra premium coverage like losses due to |
| There are vast variety of businesses are eligible | | | | dishonest employees, Robbery, Burglary and |
| for business owner's policy. Some of the | | | | mechanical breakdown. |
| examples are bakeries, fast food restaurants, | | | | Protecting business assets against loss is as |
| convenience stores and restaurants providing fast | | | | important as the insurance cover for home and |
| food, wholesale and retail traders and many other | | | | the contents. However, you need to make sure |
| businesses related with service industries. | | | | that the amount covered is not inadequate. |
| Interestingly, restaurants providing full services | | | | Estimate both replacement value and actual value |
| may be denied the advantage of this policy. Other | | | | of your property. BOP also covers the losses |
| businesses that may find eligibility difficult are bars, | | | | occurred due to the damage to property or an |
| auto repair mechanics and manufacturers. | | | | instance of injury because either your business did |
| Let us discuss the property insurance and liability | | | | something or it didn't do something. |