Commercial Insurance

Business Owners Plan (BOP)

Purpose of BOP Coverage

The Business Owners Plan for insurance is designed to offer a comprehensive solution that addresses the varied needs of small to midsize businesses. Its core objective is to streamline and efficiently provide essential insurance coverage by consolidating key protections into a unified, well-structured plan. This approach not only ensures a more holistic safeguard for the business but also seeks to enhance affordability and simplicity in managing insurance premiums. In essence, the plan aims to provide a tailored and accessible insurance solution that aligns with the specific requirements of business owners.

Protecting You

Replacement Cost vs. Actual Cash Value (ACV)

Replacement cost is the amount to replace or rebuild your home or repair damages with materials of a similar kind and quality without deducting for depreciation. Often the cost to rebuild a home in accordance with current building codes with new raw materials at current labor rates is significantly higher than the proceeds you would receive if you sell your home.

Actual cash value is the replacement cost of your home minus age and wear and tear. Many times an actual cash value policy does not pay enough to fully return your home to the way it was before an incident.

Buidling (if applicable)

Pays for damage to building structures attached to your buidling. This includes damages to fixtures such as plumbing, electrical wiring, heating, and permanently installed cooling systems.

Business Personal Property

Business Personal Property coverage includes:

Personal Property of Others held by the Insured but belonging to others.
Tools and Equipment owned by the insured’s employees, used in business operations.
Tenant Improvements and Betterments in a non-owned building occupied by the insured.
Leased personal property the insured is contractually responsible for, excluding items under Personal Property of Others.

This coverage reimburses for damage or theft of business personal property, such as furniture, electronics, etc., on or off your property. Choose replacement cost or actual cash value. Note: Coverage for items like jewelry, antiques, etc., may be limited; consider additional protection with a scheduled personal property endorsement.

Business Income and Extra Expense

Business Income coverage helps when you can’t operate your business due to property damage. It kicks in to cover the actual loss of income and any extra costs you have to bear while getting things back on track. This includes your net income (profit or loss before taxes) and regular expenses, like payroll. Extra Expense coverage takes care of additional costs that pop up because of the damage, helping you manage the financial strain during the recovery period. No need to worry about deductibles or waiting periods, except as mentioned in specific cases.

Money Orders and "Counterfeit Money"

Forgery or Alteration

Outdoor Signs

Inflation Guard

Money and Securities

We’ll cover the loss of “money” and “securities” used in your business. This applies whether they’re at a bank, in your living space, your partner’s living space, or with any employee responsible for the property. The coverage extends to the described premises or while in transit between these locations. Losses directly resulting from theft, disappearance, or destruction are eligible for reimbursement.

Employee Dishonesty

You have the option to broaden your coverage for Business Personal Property to encompass direct loss or damage to both business assets and financial instruments, namely “money” and “securities.” This extension specifically addresses dishonest acts committed by any of your employees, whether acting independently or in collaboration with others (excluding yourself or your partner). The objective of such acts is twofold: causing harm or damage to your interests and seeking financial gain. This provision serves as a professional safeguard against potential dishonest conduct by employees within your organization.

Important Endorsement Considerations

Hired & Non Owned Auto

Employment Practices & Directors and OFficers

Cyber Security Coverage

Bonds

Water and Sewer Back up

Guaranteed Asset Protection (GAP) will pay the difference between an insurance company’s payment for a totaled vehicle and the balance of a vehicle loan. Since benefits are paid on an Actual Cash Value basis (depreciation), this coverage is traditionally purchased when an individual is buying a new vehicle.

Accordion Title

Inland Marine

Protecting Others

Medical Payments

We are committed to covering medical expenses resulting from bodily injuries caused by accidents. This coverage extends to incidents occurring on premises owned or rented by you, adjacent areas, and in connection with your business operations. Importantly, these payments are made irrespective of fault. The standard limit for this coverage typically stands at $10,000 per person. Your comprehensive protection is our priority.

Business Liability

We will cover the money you have to pay if you’re legally responsible for:

Someone getting hurt (bodily injury)
Damaging someone’s property
Personal and advertising-related trouble

It is our responsibility and obligation to defend the insured against any legal action seeking such damages. The extent of liability protection is at your discretion, allowing you to tailor it to your specific needs. Your informed choice ensures that you have the appropriate level of coverage for your circumstances.

Personal Injury/Slander

Protects you in the event you get sued for slander. This is not covered by all policies.

Additional Property Loss Payee

Those you have lease agreements with for leased equipment or property

Damage to Premises Rented to You

Business Liability coverage is like a safety net for when things go wrong with places you’re renting. If there’s property damage because of a fire, lightning, or explosion, it’s got you covered. This includes spots you rent for a short time, 7 days or less. The Damage to Premises Rented to You Limit, mentioned in your policy, matches the Occurrence Limit and goes up to $1,000,000. It’s there to make sure you’re well-protected when unexpected stuff happens.

What happens if I am sued?

The personal liability part of your home insurance is like your legal bodyguard—it helps cover the costs of defending you in court, no matter how the case turns out. It can also pitch in for the other person’s medical bills or repairs if you’re responsible.

According to the Insurance Information Institute (III), this coverage kicks in for things like:

Damage or injuries caused by your pets
Accidental harm caused by you or your family
Medical costs for a friend injured at your place, no matter whose fault it is

Typically, coverage starts at $100,000. It’s crucial to pick the right limits for your situation.

*If your policy doesn’t include Personal Injury/Slander coverage, you might not be covered for those specific situations.

Umbrella Insurance helps cover above your limits

Do you have...

• Awnings
• Gutters and downspouts
• Yard fixtures • Outdoor swimming pools
• Piers, wharves, and docks
• Beach or diving platforms or appurtenances
• Retaining walls
• Walks, roadways, and other paved surfaces

Additionally, do you have work supplies or other equipment that leaves the business premises?

If you’ve recently added a location, experience notably increased business during specific seasons, serve or sell alcohol, or own mobile equipment, let us know.

What is not covered?

The following items are excluded from coverage: property off premises, boilers, unexplained missing property, loss or damage of fragile articles, outdoor swimming pools, outdoor antennas, fine arts, water, land (including land on which the property is located), growing crops, and employer’s liability and workers’ compensation.

Should you buy Flood or Earthquake Coverage?

Flood – It’s crucial to understand that standard homeowners or renters insurance typically doesn’t cover damages resulting from a flood. Flood damage isn’t limited to specific areas; it can affect your property regardless of its location. Even if your property is not in a Special Flood Hazard Area (SFHA), you have the option to purchase flood insurance. In some cases, mortgage lenders may require homeowners to obtain flood insurance if their property is situated in a high-risk flood zone, in compliance with federal regulations.

Earthquake – Damages caused by events like sinkholes or earth movement are generally not covered by standard homeowners policies unless explicitly requested and purchased as an additional coverage. It’s advisable to explore and consider additional coverage options to ensure comprehensive protection for your property against these specific risks.