Article by Marilyn Katz

What is a BOP? And how does such a funny sounding work relate to a serious topic like business insurance?

A Business Owners Policy (BOP) is very popular with small business owners, and even home business owners. It packages up common types of coverage in one policy to make it simpler for small business owners to purchase commercial insurance.

Here are some common types of coverage that could be included in a BOP.

Business Property Insurance will cover your business property against damage or theft. It may not include flood insurance which may need to be purchased under the National Flood Insurance program.

Before you apply for a policy make sure you have an accurate inventory of all of your business property you need to coverage. Consider your buildings. But also consider the tools you need to run your business, plus inventory, and supplies you have on hand.

One common mistake that home business people make is to assume their home insurance policy will be adequate to cover them. Make sure you know the limits of your property insurance, and if they can cover everything you need to run your business. Do you hae computers, tools, supplies, and iventory? Sit down and calculate how much it would cost to replace that property if you lost it in a fire, or if it were stolen.

Business Liability Insurance will protect you in case a customer or visitor claims that your company injured them in some way. There are different types of liability insurance, and your own individual business will have different needs.

For instance, a store will certainly need to be protected in case a customer visits and claims that they were injured on your property. A professional like a dentist, lawyer, or financial professional may also need professional liability insurance in case a customer claims that their services injured them. A toy maker would need product liability insurance in case a customer claims that their product injured them after they had purchased it and taken it home.

Commercial auto insurance must be considered by any business that uses a vehicle in the course of a work day. Many small business owners, and especially home business owners, overlook it because they assume their personal auto insurance will be enough. This mistake can ruin a business in the case of a serious accident.

It will probably not be a good idea to depend upon your own personal auto insurance, and it is an especially bad idea to depend upon your employee’s personal policies to defend them! At the least, your coverage may not protect any inventory you trasport, and especially other people’s property you are paid to transport. At the worst, your insurer may find you mistated your personal application, and so they will not want to cover you at all!

Many business owners do not have adequate coverage because they think it will be a long and complcated process. That is why business owners policies (BOP) are so popular with home business, dentists, hair stylists, and small shops. They package up insurance for small business, but can also be customized for the needs of a unique business.

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Learn about common types of business insurance that your small business may need.http://www.businessinsurancestore.com/business-insurance.html

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