What Is a Business Owners Policy and Do Small Businesses in Fresno Need One? 

Running a small business means managing risks every day. A business owners policy (BOP), bundles three commercial coverages into a single policy, making it a convenient and cost-effective choice for Fresno businesses.

What Does It Cover?

A BOP typically offers the following:

• Commercial property insurance: This can cover damage to your building, furniture and inventory caused by fires, theft, vandalism and certain weather events.
• General liability insurance: This can cover third-party claims of property damage, bodily injuries, and personal and advertising injuries.
• Business interruption insurance: This can help with lost income and ongoing expenses if a covered risk forces you to shut down your business temporarily.

 

Depending on your circumstances, you can add endorsements for cyber liability, equipment breakdown, and hired and non-owned auto coverage to your policy.

What Does It Exclude?

A BOP does not cover everything. Common exclusions include commercial auto liability, workers’ compensation claims, and flood or earthquake damage. Each of those exposures may require its respective policies.

When Is It the Right Choice vs. Standalone Policies?

A BOP may be the right fit if your business operates from a fixed location, serves customers in person and faces fairly standard liability exposure. Standalone policies may serve you better if your operations are complex, your industry carries specialized risks, or you need coverage limits that exceed what a BOP can offer.

California-Specific Considerations

California businesses face some unique exposures worth keeping in mind when considering a BOP. Employment laws, litigation environment and exposure to wildfires and earthquakes can influence what coverage your business needs.

 

How Can Eaton & Eaton Insurance Help?

Our team can work with multiple carriers to match your specific operations to the right policy structure. Contact us today to review your current coverage or get a quote tailored to your business.

 

 

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.