A Business Owners Policy (BOP) is essential insurance coverage for almost any small business.
Whether a Law or Accounting firm rents, owns a building or works out of their house; the firm needs a BOP. While firms may understand how important malpractice insurance is. Professional liability insurance only covers the errors and omissions. A malpractice claim can be devastating to an uninsured firm, but claims arise from the business side of the practice also.
A BOP is designed to cover business insurance exposures that are not covered by malpractice insurance. Even for a sole practitioner that rents just a desk, a BOP is essential. Just because your landlord doesn’t require insurance coverage proof, does not mean you do not need it. The BOP may combine insurance coverages for:
- Property Insurance (Building and Business Personal Property)
- Damage to other leased property
- Crime Insurance
- General Liability Insurance (not the malpractice insurance)
- Business Interruption Insurance
- Hired Non-owned auto
- Sewer Water Backup
- Cyber Insurance (Can sometimes be added)
With cyber or crime insurance, firms may find that they may need separate policies for certain exposures if they cannot get the limits and coverage needed under the business owner’s policy. If higher liability limits (not malpractice insurance) are needed, a commercial umbrella insurance policy can also be added.
Even if you work out of your home, unless you have properly endorsed your homeowners policy for your business exposures you may have insurance coverage gaps that a BOP addresses.
As with Attorney Malpractice Insurance or Accountant Errors & Omissions Insurance, a firm needs to protect its assets. A BOP is an important protection piece for your coverage puzzle.
Lee Norcross, MBA, CPCU
Managing Director, CEO
(616) 940-1101 Ext. 7080