Opening your own business means developing your product or service, finding a location to perform your work, hiring employees, marketing your business to customers, and getting the tools, equipment, and materials needed for daily operations. Business owners also understand that Commercial Insurance is needed, and often required, in order to operate their business and also protect the value of their company and assets. One of the more popular Commercial Insurance products to help businesses get protected is Business Owner's Policy Insurance. Today's Aegis blog post takes an in-depth look at this popular type of Commercial Insurance by examining its benefits, as well as what it covers and what it excludes.

Benefits Of BOP

Business Owner's Policy Insurance, commonly known as BOP, is a business insurance package that combines several forms of insurance protection into one comprehensive package. For many small business owners, it's a must-have because it typically bundles many essential Commercial Insurance policies into one, often at a lower premium than if they were purchased individually. BOPs are also popular because of their flexibility, as they can be customized to specific industry needs through added endorsements. For example, restaurants could purchase a BOP tailored them that includes coverage for food spoilage due to utility outages.

What It Covers

Because BOPs include liability and property protection, they can protect a wider range of assets and businesses. For example, BOPs typically include General Liability, which can protect companies in the event of a lawsuit from a third-party. Companies can face lawsuits for a variety of reasons, including property damage, product liability, slips and falls on a commercial site, or even libel and slander. BOPs may also include Commercial Property coverage, which protects against property losses stemming from fire, theft, vandalism, and severe weather events. A single BOP policy can protect against a majority of the issues and liability risks companies face on a daily basis.

What It Excludes

While BOPs are very comprehensive, they do not cover all losses or protect against all kinds of threats and liability issues. BOPs do not include Workers Compensation coverage, so companies must purchase this coverage to protect against claims by injured workers. In addition, BOPs do not cover commercial vehicles, so businesses with company cars or trucks must have a separate Commercial Auto policy to cover those vehicles. Also, businesses cannot rely on BOPs to protect them in the event of a Professional Liability claim. Companies would need to have separate Professional Liability Insurance, also known as Errors & Omissions Insurance, to protect against lawsuits related to their professional services.

Business owners need the financial protection that comes from Commercial Insurance coverage, but it's critical to first understand the potential liability issues as well as all the assets that need to be covered. Many times business underestimate how much insurance they need, and find themselves underinsured when disaster strikes. Aegis Insurance & Financial Services excels at providing Texas businesses with comprehensive and dependable Commercial Insurance solutions across all industries at competitive rates. Contact Aegis today at 713-850-7622 for more information on BOP coverage, as well as our full range of Commercial Insurance solutions.