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Insurance companies selling business insurance
offer policies that combine protection from all
major property and liability risks in one
package. (They also sell coverages separately.)
One package purchased by small and mid-sized
businesses is the businessowners policy (BOP).
Package policies are created for businesses that
generally face the same kind and degree of risk.
Larger companies might purchase a commercial
package policy or customize their policies to
meet the special risks they face.
BOPs include:
Property insurance for buildings and contents
owned by the company -- there are two different
forms, standard and special, which provides more
comprehensive coverage.
Business interruption insurance,
which covers the loss of income resulting from a
fire or other catastrophe that disrupts the
operation of the business. It can also include
the extra expense of operating out of a
temporary location.
Liability protection,
which covers your company's legal responsibility
for the harm it may cause to others. This harm
is a result of things that you and your
employees do or fail to do in your business
operations that may cause bodily injury or
property damage due to defective products,
faulty installations and errors in services
provided.
BOPs do NOT cover
professional liability, auto
insurance, worker’s compensation or health and
disability insurance. You'll need separate
insurance policies to cover professional
services, vehicles and your employees.
The
success of a business, whether it's a tiny
enterprise run out of a basement or a large
corporation, is largely dependent on hard work
and ingenuity. However, no matter how
industrious you are, one disaster can wipe out
all your profits and even destroy your business.
The key to making sure that all the effort and
money you have invested in a business doesn't
disappear when a disaster strikes is to protect
it with the appropriate insurance.
Source
© Insurance Information
Institute, Inc. |
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© Copyright
2010 PARS INSURANCE AGENCY. CA LICENSE # 0D91065
Source
©
Insurance Information Institute, Inc. |
