BOPs and Commercial Property Insurance

Most small business owners choose to invest in business owners policies—also known as BOPs. Put simply, BOPs can help business owners easily optimize their commercial insurance. BOPs usually contain several types of insurance, including commercial property coverage. This is an important form of coverage, as it can protect your business assets and possessions when damaging incidents occur.  

Why BOPs Are Valuable  
BOPs generally cater to the needs of small businesses. Through BOPs, business owners can obtain several types of coverage all in one package, thus ensuring cohesive insurance. BOPs are usually more affordable than separate policies.  

To start, most BOPs usually offer commercial property, general liability and business interruption insurance. However, policyholders can usually add extra coverage to work in conjunction with their BOPs. Doing so can allow them to properly expand their business insurance benefits. 

Commercial Property Coverage in a BOP  
The commercial property insurance within a BOP can help protect any property owned by your business. Some items this policy might cover include:  

• Buildings 
• Furnishings and certain fixtures 
• Equipment and materials 
• Inventory  

Should a hazard damage or destroy this property, your BOP’s commercial property coverage can pay to help you rebuild, restock or replace lost items. A variety of hazards might qualify for claims under your coverage, such as:  

• Fires  
• Theft and vandalism  
• Storm damage  

Commercial property insurance can then indemnify you for the costs caused by the lost property. This means you won’t have to spend hard-earned income trying to recover from a loss. That way, you can easily get your business back on its feet.  

Limits, Exclusions and Deductibles  
Keep in mind that your BOP’s commercial property insurance won’t cover every type of property from all potential losses. Consider these policy limitations:  

Policy limits—When you sign up for your BOP, you can choose the value of commercial property coverage that you want to carry. This reflects the maximum amount that your policy will pay for your physical property losses. It’s important that you choose a value that reflects the cost of the property you own—including buildings, inventory and equipment, among others. Be sure to verify the cost and value of your property through appraisal or research.  

Exclusions—Commercial property insurance will not extend to all property-related losses. For example, this coverage might not insure certain specialty equipment or outdoor items. Such a policy also won’t cover damage from certain hazards, such as floods or any intentional damage you may cause. 

Deductibles—Most commercial property coverage comes with a deductible. The deductible is a flat amount that your business agrees to pay for property damage before your insurance pays out for a claim. If the damage falls below the cost of your deductible, then you will not receive coverage for your losses. 

When putting together your BOP, remember to talk to one of our agents about how to optimize your commercial property coverage. By carefully crafting your policy, your business will receive maximum financial benefits.