5 FAQs about Business Owner’s Policies

​A BOP (business owner’s policy) is among the most common plans related to commercial insurance. Because of its high customizability, most specifications depend on your business. Find out the answers to frequently asked questions below.

Does the Law Require a Business Owner’s Policy?
Most of the time, a BOP entails commercial property and general liability insurance. The law requires neither of the policies mentioned. However, the people you encounter for business meetings will most likely have requirements for general liability insurance. This policy might be needed if you’re planning on signing a client contract with the mentioned requirements. You will also need proof of having general liability coverage when applying for appropriate professional licenses. Additionally, plenty of commercial landlords require their tenants to buy commercial property insurance. Before signing a lease, landlords usually ask for proof of coverage.

What is the Needed BOP amount?
The BOP coverage amount you need typically depends on several factors, including the size and type of your owned business, type of customers you usually encounter, and the number of employees you have. However, plenty of small businesses prefer the standard $1 – 2 million low business policy. It means that plans will cover up to $1 million in any claim, along with a limit of $2 million for the policy lifetime, which is usually only one year.

Can Non-Owned Auto Insurance be Added to My Policy?
If you have employees that use their vehicles regularly for business purposes, including traveling for client meetings or running work errands, then you should consider buying non-owned auto insurance. You can typically add this coverage to your business owner’s policy.

Do BOPs cover independent Contractors?
Having a business owner’s policy allows added coverage for you and your employees. However, it does not include insurance coverage for an independent contractor. You can either require contractors to purchase a policy that ensures general liability insurance for contractors or add them to your plan temporarily as an insured additional.

What Coverage Does a BOP Provide for Social Media Risks?
Advertising injury coverage offers protection for lawsuits that are related to slander, libel, brand or copyright infringement, and invasion of privacy. It means that you have coverage in instances where people might sue you for writing adverse comments on social media. Fortunately, your BOP’s general liability portion includes the coverage in the policy.

Having a BOP is exceptionally essential for small business owners. The added coverage protects not only you but also your employees. Discuss with your insurance agent and apply for one now.

At CSIS Insurance Services, Inc., we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (888) 501-2747. You can also request a free quote by CLICKING HERE.