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Knowledge Center Items What Makes A Business Owners Policy a Perfect Insurance Fit?

What Makes A Business Owners Policy a Perfect Insurance Fit?

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A Business Insurance Policy (BOP) combines multiple coverage types into one single policy. Typically, it bundles General Liability and Commercial Property insurance into a package that is less expensive than buying two separate policies. And, although a standard product, each policy can be modified to the needs of the business. Coverage requirements vary by industry, location and other factors.

General Liability coverage includes third-party medical expenses and related costs and damage to a third party’s property. Commercial Property insurance covers damage or theft of assets owned by the business. Included is Business Interruption coverage, which protects against loss of income due to suspension of operations after a claim.

Depending on the BOP provider, other coverages that can be added to the program as enhancements include Cyber Liability, Inland Marine, Spoilage of Merchandise, Equipment Breakdown, Water Back-up & Sump Overflow, Accounts Receivable, Crime, Earthquake, Employment Practices Liability (EPLI), and Foreign Liability (including kidnap and ransom).  Typically, Professional Liability (depending on the industry sector), Commercial Auto and Workers Compensation insurance are not included in a BOP. Separate policies are needed.

Ideal candidates for a BOP include small businesses with revenues up to $ 1 million in these industry sectors and professions: retail; office; medical; accounting services; hair salons; attorneys; insurance agents; personal trainers; photographers; real estate sales; and consultants specializing in business strategy, communications, media, public relations, and finance. The information typically required to obtain a BOP quote includes contact info, estimated revenue over the next year, extent of work with the public, type and estimated value of equipment, tools and inventory, number of years in the industry, current insurance details, description of the nature and risk exposures of the work performed, and claims history, among other data.

Securing a BOP is convenient for insureds with RPS. You can provide a BOP quote to your client by using the RPS e-Commerce platform. You can rate, quote and bind new business on demand.  Check out our BOP Starter Kit if you haven’t used our platform before for a step-by-step guide on how to use our online tool.

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