Understanding A Business Owners Policy

    Published: 06-16-2009
    Views: 10,022
    Wells Fargo financial expert Corey Dargan explains how to understand a business owner’s policy.

    Corey Dargan: Hi! I am Corey with Wells Fargo and Company. If you own a business, you really should know all about BOP or Business Owners Policy is designed to deliver value and convenience by combining three of the most important types of business insurance coverage that business commonly need in one policy. It includes Property insurance which provides insurance coverage for your business's physical structure and its contents including inventory, office equipment, furniture and computers. For example, if you lose your product inventory to fire, Property insurance will cover your loses.

    Business interruption service which allows for financial compensation for loss revenue and temporary relocation expenses if your business is temporarily shutdown due to a covet event. For example, if a hurricane forces you to close up shops for a week, Business interruption insurance will cover the proceeds for lost sales.

    Liability insurance which helps to protect your business against claims and related expenses resulting from allegation of negligence, including personal injury and property damage. For example, if someone slips and falls in your store and breaks an ankle, Liability insurance will cover medical cost. A business owner's policy covers the basics for many small and medium sized businesses, but depending on the nature of your business, you may also wish to incorporate other types of insurance into your business owner's policy such as Commercial Auto insurance, Worker's compensation and Umbrella Liability insurance and Professional Liability insurance.

    Comparing business insurance policies may seem intimidating, but it can be a lot less stressful when you know what you are looking for. Talk with an experienced business insurance agent to make sure you have the basic coverage needs met. And remember to review your policies annually to make sure your coverage is keeping pace with your business.