The terminology for insurance coverages can be confusing – as insurers label policies differently from each other, sometimes using acronyms or abbreviated product descriptions. For example, General Liability coverage – Do you have a Business Owner Policy (BOP) or is it a Commercial General Liability policy (GL)?
Many insureds and insurers will describe or label a BOP as a GL. While General Liability coverage IS included in a BOP, that’s not the only coverage. A BOP offers broader coverage with additional options to endorse or extend coverage. For businesses, a BOP can help to protect the financial stability of your company against a wide range of perils.
Now some clients will say “I have an E&O policy in place, I don’t need a BOP”. Again, insurance can be confusing – and that is why we are here. A BOP helps cover claims resulting from business operations (i.e., bodily injury and property damage claims). Professional Liability policies (E&O) cover the entity and employees against claims made for any actual or alleged negligent act, error, or omission, committed in the scope of performing your professional services (i.e., misrepresentation, omitting information, negligence, falsifying structural details). Both policies may exclude the losses that the other policy would cover. With Landy’s Real Estate Insurance Program, your E&O policy does include a sublimit for BI/PD coverage to open houses, but not showings. Adversely, BOP’s often exclude the open houses, but cover showings. So, as you can see, the policies are complementary to each other and it is important to have both in place.
A BOP has been compared to a homeowner’s policy for your business, as it is designed with the option to combine Business Personal Property (BPP) and Business Liability (General Liability) into one business insurance policy. In addition, a BOP also provides defense to an insured. Often, defense costs make up most the of the total loss amount paid-out in the claim, as we all know in today’s suit-heavy world lawsuits can drag on forever.
Coverage includes, but is not limited to, Business Property coverage (computers, client records, buildings) Property Damage to others, Bodily injury, Business Interruption and Loss of Income coverage, tenant improvements, and more. In addition to a traditional BOP, Landy also makes it very easy to secure a Home-Based BOP if you run your business out of your home – which even extends coverage while you are out of the house working or have additional locations.
There are unlimited situations that could occur where someone gets hurt, property is damaged, or business equipment is stolen or ruined. Too many examples for one blog, but to mention a few:
- A client comes to visit your office, trips, falls, seriously injuring themselves. Or a client falls down the stairs while you are showing them a house.
- Who would pay for the damages if there were a fire, and the property and/or your business equipment were a total loss? Or the pipes burst? Who would pay for the clean-up?
- What if you are appraising a property and you accidentally damage the owner’s property?
- An agent posts something unfavorable on social media. Yes – the agent will be named in a claim, but the lawsuit will be against the company. BOP coverage includes claims related to personal and advertising injury as well.
These claims can be expensive – considering damages and defense costs. By securing a Business Owners Policy, you help protect the financial stability of your business to help pay for covered losses and lawsuits.
Landy Insurance makes the process of securing coverage SIMPLE. With BOP premiums starting as low as $500/year, and Home-Based Office policies starting at $150/year, it’s a no brainer! Let us help you.
For more help from our partners at Landy Insurance, click HERE.