Introduction
Insurance, be it motor, health, business, or life, is very important for every individual and business. There are different types of coverage that are sold by the insurance companies in the form of a single contract. Even small business organizations can have an insurance policy for their business, which is known as the BOP (Business Owners Policy). The coverage that BOP provides is liability insurance and property insurance risks (all major ones), which also include additional coverage. Also, you should know that BOP compensates a business owner for the income that the business owner loses following a disaster. Disaster means the disruption of the business operation and the vacation of the business premises in such an event.
How Business Insurance Helps
There are many ways in which small business insurance can help and assist you in recovering fiscal losses. The business insurance, or BOP, also covers the additional expenses that a small business incurs if they are operating or working in a temporary business premises or location. Besides all of that, specific kinds of risks are also covered in additional coverage, which can be added to the rudimentary BOP. For instance, if the business has a costly sign board with LED lights and other highlights, then the insurance coverage can pay you for the damage or loss if it is specifically added to the BOP about the sign board. People with e-commerce businesses can also take advantage of BOP.
Eligibility
Who Can Be Eligible for BOP? Not all businesses are eligible for BOP. Only small and medium-sized businesses, or SME, are eligible for BOP after they meet certain eligibility criteria. Certain factors that the insurance company will look into are the area of the premises, the needed limits of liability, the kind of business, the degree of offsite activity, and so on. Most small businesses need to buy the following kinds of insurance: Let’s have a look at it.
Property and Liability Insurance
Property insurance is also important in a business, especially if the property is damaged mainly because of different kinds of perils like fire or others. Property insurance covers not only the structure of the property from the outside but also other things like furnishing, raw materials, machinery, inventory, and other important items for business functioning. Then, there is also business auto insurance, in which the insurance company pays for the cars or vehicles owned by the business. In this insurance, it pays costs to the third parties that result in any injury or damage for which the business or firm is liable, up to the policy limits. Besides all of that, no matter what, BOP, or small business insurance, is very important for small and medium enterprises and other small businesses.
