that sell Business Insurance usually offer policies that combine
protection from major property and liability risks in one package.
A common type of package purchased by small and mid-sized businesses
in the Business Owner's Policy (BOP). Bigger companies usually purchase
Commercial Package policies or customize their policies in order
to protect against special risks.
Owner's Policies offer the following coverage:
- Property Insurance - Covers buildings
and contents owned by the company. There are two different forms,
Standard and Special. Special Form policies provide more coverage
and tends to have marginally higher premiums.
- Business Interruption Insurance
- Covers loss of revenue resulting from an insured loss that
disrupts business operations. it can also provide extra expenses
so the business can operate from a temporary location while
repairs are made to your place of business.
- Liability Protection - Covers
your company's legal responsibility for harm it may cause to
other people or businesses resulting from the actions or inactions
of the owner or employees. Businesses that sell or manufacture
products also carry additional coverage that compensates individuals
or businesses that are harmed by the product sold or manufactured
by the business.
- Business Auto Coverage - Not
included in a standard BOP policy but can be added as an optional
coverage, or as a stand-alone commercial auto policy.
BOPs do not cover
Professional Liability, Workers Compensation or Health and Disability
Insurance. These risks require special coverage that is available
in a stand-alone policy from an agent or insurance company representative.
Flood, earthquake and acts of terrorism are generally not covered
by business insurance policies, but can be purchased as riders
or separate policies. Consult your insurance agent or company
representative for details.
If you wish to buy Flood Insurance, or your lender is requiring
you to purchase it, contact your insurance agent or the National
Flood Insurance Program. For information about the program, call
(888) CALL-FLOOD or look at its website at www.
Coverage for earthquake damage is excluded in most property insurance
policies, including Homeowners and Business Owners Package policies.
If your business is located in an earthquake-prone area, you'll
need a Special Earthquake Insurance Policy or a Commercial Property
Under the Terrorism Risk Insurance Act of 2002, only businesses
that purchase optional terrorism coverage are covered for losses
arising from terrorist acts.