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Business Owners Policy
If you have a small to mid-size business with annual revenue less than $5 million and fewer than 100 employees, it may qualify for a business owners policy (BOP). The BOP combines property, liability, and business interruption into one policy with premiums that are less than what you would pay to purchase the coverage separately. In addition, insurance companies add enhancements to the BOPs to provide coverage in different scenarios. You’ll have peace of mind that your business is protected in one affordable policy.
Consider a BOP if your business:
- Has a physical location, such as a store or an office
- Is at risk of lawsuits
- Has assets that could be stolen or damaged, including cash, computers, furniture, and product inventory
Business Owners Policy (BOP) FAQs
What liability limit should I have on the policy?
No less than $1,000,000 per occurrence. You should review your exposures with us to determine a limit based on your business/situation.
What deductible should I choose?
Most insurance companies set the minimum deductible at $1,000, while the average policy deductible is closer to $2,500. It is best to evaluate your risk and work with us to determine the deductible that is best for your situation.
Does the BOP cover building supplies or equipment that I deliver to a job site?
Maybe. You need care, custody, or control coverage, which may or may not be included in your policy. We can work with you to ensure that coverage is included.
Are the tools used for my business covered by my BOP?
Sometimes, coverage is included in an unendorsed BOP; coverage depends on the policy and insurance carrier. It may not be enough coverage for your business needs.
The best practice is to insure your tools and equipment with an additional policy. Some insurance carriers allow this to be done by endorsing the BOP; others require a standalone policy (inland marine or equipment floater).
Will I get a premium discount if I install security cameras?
- Typically, insurance carriers do not apply discounts for security cameras; however, if a claim is filed against you, having the camera footage proving you were not at fault can greatly benefit you.
- Be careful not to disable your alarm system(s). If you are receiving a discount on your insurance premium for having a fire or burglary alarm in place when a fire or burglary occurs, the alarm system must be active at the time. Should you have manually disabled the alarm for any reason and there was a loss, the insurance carrier may not provide any coverage because the system had been disabled.
Is there cyber liability coverage included in my BOP?
Most policies include a nominal amount of cyber coverage; however, based on your exposures, we may recommend increasing coverage or a standalone policy.
What is a Certificate of Insurance (COI)?
A COI is a document provided by the insurance agency to a third party that proves a business has insurance coverage as of the date the COI is issued. It provides one or more lines of insurance, policy number, effective and expiration dates, insurance company, and limits of insurance.
I am a contractor who hires subcontractors. When do I need a subcontractor's agreement?
You should have one anytime you use a subcontractor as part of your operation.
I am hiring a subcontractor. Do I need to request a Certificate of Insurance from the subcontractor?
Yes, and the certificate should include at least liability and workers’ compensation policies.
I’m a contractor, and a customer is not happy with the work I did for them. Is there coverage for this under my BOP?
No. Your policy covers bodily injury and property damage stemming from work you completed. Simply not being satisfied with your completed work is not a covered loss.
Does my policy cover the equipment that I rent?
Maybe, but not always. Some policies build coverage in, and others require it to be added. We can work with you to ensure you have adequate coverage.
Am I covered if I perform work in a state other than where my business is located?
Your liability follows you within North America and the U.S. Territories. However, if you’re doing work out of state, it’s best to review your exposures with your agent to ensure coverage.
At FIFS, we are dedicated to working with businesses to improve the overall health of your company using strategies to manage risk, control utilization, and ultimately improve your bottom line. Learn more about FIFS Employer Advantage.
