Insurance for Business Owners
If you own a small business The Summer Group has a Business Owners Insurance Policy (BOP) for you.
Intended for virtually an endless array of main street businesses, the BOP combines building, personal property, and liability insurance coverage with other attractive options into one package. It is an efficient way to provide the business owners insurance coverages that most small businesses need.
We will review you business insurance needs and provide a risk assessment to determine if a Business Owners Insurance policy is right for your business.
Are You Eligible for a BOP?
The two keys to BOP eligibility are type of business and square footage. General examples:
- apartment buildings
- office buildings
- buildings used primarily for mercantile, service or processing purposes
- mixed use, e.g., stores in an apartment building.
Square footage guidelines can relate to overall building space or a business’s rental space. Generally, the cutoff for a Business Owners Policy eligibility is 25,000 square feet; however, this varies between business insurance companies. We will determine if a business is eligible for a BOP and if the BOP option is the best value.
Business Insurance Personal Property Coverage
Business personal property coverage can include:
- a building owners’ business personal property in an apartment building
- office business personal property
- business personal property for merchants, wholesalers, and service or processing organizations
- commercial condo unit owners.
When you own a building, the same Business Owners Insurance Policy must cover both the building and the business personal property. Otherwise business personal property can be insured alone in a BOP. This is good for businesses that lease or rent space.
Different BOP Forms
The BOP named peril form will:
- have coverage for a dozen or so perils such as fire, lightning, windstorm and hail, sprinkler leakage, and vandalism
- usually cost less.
The Special peril form will:
- have coverage for all risks of direct physical damage except as limited in the policy
- have broader coverage than one setting forth specific perils.
By nature, the Special form has more coverages built in. The Standard form has approximately a dozen additional coverages. Among these are:
- debris removal
- counterfeit money orders and paper currency
- increased cost of construction
- forgery exterior glass and lettering (this includes replacement and repair of items on the outside of the building, commonly advertising-related materials)
- collapse and water damage.
Don’t worry, we’re not ignoring loss of business income and extra expenses from a direct insured loss. Frequently a loss from a fire or other insured peril goes beyond the direct damage caused by the fire. Even minor damage can close your business for a long time. This means your business has no income to maintain salaries and other expenses. Don’t ignore loss of income protection!
Insurance Tip. Business interruption coverage is not a luxury.
Recall that extensions are an opportunity for you to have certain property covered after a loss. Extensions are controlled by:
- a limit on expendable dollar amounts
- an after-the-fact additional premium, or
- a territorial restriction.
The ISO BOP’s make provisions for the following:
- newly acquired property
- personal property off-premises
- outdoor property personal effects (non business property)
- valuable papers and records
- collapse and water damage.
Coverage is limited in these areas. You may need specific insurance to cover one or more of these extension areas for your business.
Exclusions & Conditions
Exclusions and conditions are common in insurance policies. BOP’s are no exception. You’ll find some exclusions and conditions from policy to policy, regardless of the type of insurance. Conditions are normally procedural matters and loss adjustments. Exclusions are matters the insurance is not designed to cover.
Note. Remember an insurance policy must be read as a unit, not as independent paragraphs or sections.
“One policy does not fits all business insurance needs.” Business insurance needs are all different. Everyone has a different type of property, amount of property, location, ownership, and so on. Your insurance coverage protection should closely reflect your risk of loss. This customized approach allows you to save money– you pay for only the insurance you really need.
Protect Against Liabilities
We will provide a risks assessment, custom build a Business Owners Insurance Policy that meets your needs, and shop the companies to get the best value for you.