Business Owner's Policy (BOP) Insurance Explained - Ted Devine, CEO of insureon


It's Ted from Insureon.

Today we're going to talk about one of the more important and

popular insurance products: the BOP, or the business owner's policy.

A BOP covers three important elements of risk all businesses have:

your property risks, your general liability risks, and business interruption.

The first part of the BOP is property protection for things like your computer equipment, your furniture, your inventory and your supplies.

Common property claims include theft, accidental damage, an event like a fire.

The typical amount of coverage is between $10 and $50,000

The second element of a BOP is general liability, and you're going to hear the term professional liability versus general liability.

There is an important nuance, and we'll talk a little bit more about professional liability in a different module.

The BOP covers General liability, which is specifically the damage that's done by you or your team on a client site.

So, let's say your team is working and you damage the furniture of your client, the general liability component of BOP will protect you.

Third is business interruption, and this is really important with events like [Hurricane] Sandy in the news.

Business interruption protects you, both from the cost and the lost profit of your business in case it can't operate.

It also covers you for elements to get your business operating quickly as possible,

which is what we all want after an event.

Things like temporary computers, temporary office space, and staff can be covered if you've got the right

elements of your business interruption policy through an endorsement or included in the BOP.

Three important elements, in addition to thinking through your risk management strategy

with your business owner's policy:

First, flood [coverage] is not included. Just like it's not included in a home owner's policy.

If you're in a flood-exposed area, we need to think through flood protection.

Second, if you've got employees, we need to protect them, and that is done in a policy called workers' compensation.

We'll talk about that in a different video.

But if you've got staff, we need to protect them distinctive from the BOP.

Third, like all the elements in insurance,

it's very important to talk to somebody that knows your industry specifically, because all the nuances of all the different coverages

with a BOP can vary by industry. We need to get that aligned specifically for you.

The BOP is a very cost effective

means of protection for companies of ten and less [employees]. The price ranges from typically from $500 to $2,000.

Often it's around $1,000 with a lot of protection.

If you want more information, please go to Insureon.com. Thank you.