Understanding Your BOP – What Is Covered and What Is Not

A business owner’s policy (BOP) combines several types of coverage into a single policy designed for small to mid-sized businesses. It can help companies reduce financial stress from property damage, lawsuits or other common business-related incidents.

What Does a BOP Typically Cover?

Most BOPs in Florida include the following:

• Commercial property insurance may cover your building and business personal property, such as equipment, inventory and furniture, against risks like fire, theft and severe weather.
• General liability insurance may provide financial protection for third-party claims of bodily injury and property damage caused by your operations, products or services. It may also cover claims of personal and advertising injury.
• Business interruption insurance can help replace lost income and cover operating expenses if your business must temporarily close following a covered event.

What Is Not Covered by a BOP?

BOPs do not cover every risk. Here are some common exclusions:

• Flood and earthquake damage—Standard BOPs do not cover damage from floods or earthquakes, which are essential considerations in Florida. Separate policies are needed for these risks.
• Professional liability—Claims related to professional errors or omissions are not included. Businesses offering advice or services may need additional coverage.
• Employee injuries—Workers’ compensation insurance is required to cover employee injuries and is not part of a BOP.
• Cyber liability—Losses from data breaches or cyberattacks are typically excluded and require a separate policy.
• Auto accidents—Business-owned vehicles need commercial auto insurance, as BOPs do not provide this coverage.

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Cathy Boyd's 1st Class Insurance Services understands the common risks many Florida business owners face. We can help review your operations, identify potential gaps and customize your business owner’s policy. Contact our team today to get started.

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.