713-772-2727 9AM - 6PM Mon - Fri
Insurance companies and their professional agents often combine coverage from a number of policies into a package sold as a single contract. The most common policy for building and business property insurance is a Businessowners Policy (BOP).
The BOP combines coverage for all major property and liability insurance risks into a single policy appropriate for most small businesses. The BOP includes business income insurance, which is also referred to business interruption insurance. This coverage compensates a business owner for lost income after a disaster. Business income insurance also covers the extra expense often incurred if a business is forced to operate out of a temporary location.
Specific risks associated with a business often require a variety of additional coverage is added to the basic BOP. For example, if a business uses electronic commerce, coverage for lost income and extra expenses can be added if the business is damaged due to a computer virus or hacker.
Only small- to medium-sized businesses that meet certain criteria are eligible for a BOP. The size of the premises, the required limits of liability, the type of business and the extent of offsite activity must all be considered. BOP policy premiums are based on these factors, along with location, building construction, security features, financial stability, and fire hazards.
Most small businesses need to purchase a minimum of four types of insurance.