Basically, three types of insurance are available to protect your business: property, liability and workers’ compensation. Although property and liability insurance are not always mandatory, it makes sense to protect all of your company assets with property and liability insurance. Workers’ compensation insurance is required by law in all 50 states.
Business owners’ policies (BOPs) are insurance packages that provide both property and liability coverage at one affordable premium. These packaged policies are available to most small and medium-size companies and can be a good alternative to purchasing separate policies for liability and property insurance.
Large companies and businesses that are considered high risk usually don’t meet the criteria for a BOP. The criteria for BOP eligibility include the size of the premises, the required limits of liability, the type of business and the extent of offsite activity. Premiums for BOP policies are based on similar factors including business location, financial stability, building construction, security features and fire hazards.
What Does a BOP Cover?
A BOP includes property protection for an office building and its contents as well as other people’s property brought into the office building. BOPs cover standard perils including fire and theft, although certain exclusions apply, such as damage caused by floods and earthquakes.
Under a BOP, a business selects the amount of liability coverage it needs based on its assets. Liability coverage pays for the cost of defending the business in a lawsuit and pays damages if the business is sued for injury or property damage. The liability policy also pays the medical expenses of those injured, other than employees, as a result of business operations.
Yeager Insurance & Financial Services is an independent insurance and financial services agency serving West Virginia. To learn more about how we can serve your insurance and financial needs, please contact us at (304) 757-3900. You may also use this site to submit requests for insurance quotes 24 hours a day, 7 days a week.
