A BOP is specifically designed for low-risk small businesses. Most small businesses need general liability insurance and commercial property insurance when they rent or own an office or other commercial space. On top of that, client contracts often require general liability coverage.
Even when coverage isn’t required, a BOP is a wise choice for small businesses that work directly with the public and own property. This policy protects against financial losses from customer accidents and incidents like fires and burglaries.
Here’s an example of how a business insurance policy works: Suppose you own a retail shop and a heavy storm hits the business district, causing damage to your facade. As a result, you have to close down the shop for several hours while you do some emergency repairs. You finally reopen but fail to notice a leak in the ceiling where water is dripping. The water pools onto the floor and causes a customer to slip, who then sues your business.
A BOP would replace or repair the assets that are damaged during the storm, pay for the facade repair, replace the income that you lose when you have to close down the shop, and cover the expenses of defending the customer’s lawsuit. But instead of paying three separate premiums for three separate types of insurance, you would pay just one premium for the business owners policy.
Interested in learning more about a business insurance policy for your business? At Knight-Dik Insurance, we’ll work with you to design coverage that protects your business from a variety of risks, unique to you. For a free insurance premium analysis, simply contact us here or call 800-286-6353.