Requirements for a Business Owner Policy

​A business owner policy (BOP) incorporates security for every significant asset and liability risks in a single insurance premium. While it’s designed to cater to basic coverages to sustain a business in a bundle, this policy is typically sold at a lower amount than available coverage. Having said, take a look at several things you should know to be eligible for a BOP.

Understanding Business Owner Policies
It’s essential to note that a business owner policy’s main objective is to have several insurance products rolled into one, usually utilized by small and mid-size businesses. The business owner insurance typically contains property, liability, and business interruption insurance in its coverage. However, the hindsight is that most insurers mandate enterprises to meet specific eligibility criteria.

Under a BOP, the property insurance is generally linked as named-peril coverage, which implies that it’ll cover damage caused by the covered peril agreed under the policy. The damages usually include fire, wind damage, vandalism, explosion, and smoke damage. But some insurers could offer open-peril coverage, meaning it contains all possible peril covered for your business.

Moreover, properties included in a BOP coverage typically include buildings, either owned or rented. It’ll also have a scope for any of your business-owned assets or an item owned by a third party kept in your area for temporary storage and custody. 

Presented here is the list of various coverage options you can include in your BOP:

Coverage for damages to property or injury to others incurred within your business’ premises

• Buildings, inventory, and items
• The interrupted business operation that affects the business revenue
• A vehicle used by your company
• Damages caused by theft, forgery, or hacking

Requirements for a BOP
Generally, low-risk businesses with a small footprint have high chances of qualifying for a business owner policy. What’s even more promising is that it integrates the general liability insurance and property insurance into one and offers it at a discounted price. 

Here are the typical business characteristics that usually cut for BOP eligibility:

• Operates under 100 employees
• Small workplace
• Runs in a low-risk industry
• Garners under $1 in annual revenue

Businesses Eligible for BOP
Enterprises in low-risk promotions are considered to pay less for their business owner insurance than those in high-risk industries. With this, here are some of the low-risk industries that are usually eligible for BOP:

• Retail market
• Information and Technology
• Software development
• Project administration
• Rental homes/buildings/establishments
• Office-based professions

Conclusion
Considering that not all businesses could qualify in business owner policies, it must be noted that eligibility requirements will differ among insurers. If you want to further widen your scale in taking steps to get BOP, consult your insurance agent to get a more explicit context of what coverage will suit your business.

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.