Your company can face a variety of liability exposures, and most insurance companies will carry a number of plans to help address these risks. For small to medium-sized businesses, a business owner’s policy (BOP policy), can combine the different coverage options you need into one policy. This is usually a more affordable way to have the liability protection you need.

Three Areas of Coverage

With a BOP, you extend the areas of liability from several policies into one comprehensive plan. Three areas that are usually addressed include:

1. Liability protection from the legal responsibility your company incurs if the operations by you or employees cause harm to someone else. It can extend to damages from defective products, errors in the services provided, or fault installations.
2. Business interruptions insurance that can help cover lost income when a fire or catastrophe disrupts the business operations. The financial support could extend to cover costs associated with operating from a temporary location following an incident.
3. Property insurance provisions for the contents and buildings owned by the company. There are some policies with more comprehensive coverage than others, so check with the broker on whether your plan includes the standard or special approach to coverage.

However, the team at David Sayles Insurance cautions that a BOP doesn’t cover auto insurance, errors and omissions, worker’s comp, or health insurance. You will need to secure additional plans for these areas.