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What does
a business-owners policy cover?
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Insurance
companies selling business insurance offer policies that combine
protection from all major property and liability risks in one
package. (They also sell coverages separately.) One package
purchased by small and mid-sized businesses is the business-owners
policy (BOP). Package policies are created for businesses that
generally face the same kind and degree of risk. Larger
companies might purchase a commercial package policy or
customize their policies to meet the special risks they face.
BOPs include:
- Property insurance for buildings and contents owned by the
company -- there are two different forms, standard and
special, which provides more comprehensive coverage.
- Business interruption insurance, which covers the loss of
income resulting from a fire or other catastrophe that
disrupts the operation of the business. It can also include
the extra expense of operating out of a temporary location.
- Liability protection, which covers your company's legal
responsibility for the harm it may cause to others. This
harm is a result of things that you and your employees do or
fail to do in your business operations that may cause bodily
injury or property damage due to defective products, faulty
installations and errors in services provided.
BOPs do NOT cover professional liability, auto insurance,
worker’s compensation or health and disability insurance.
You'll need separate insurance policies to cover
professional services, vehicles and your employees.
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Used
with permission from
Insurance Information Institute, Inc. - ALL RIGHTS RESERVED -
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