Do you need to find the Cheapest Liability Business Insurance or “local car insurance agents near me” in California, regardless if your business is located in Orange County CA, or Los Angeles CA?
If you are in this position, then let’s walk through the beginning of what a Business Owner Insurance policy truly is starting with policy coverage and risk appetite.
Coverage provides a broad package of insurance coverage’s for small and medium-sized apartment buildings, offices, and retail stores.
Mandatory coverage on each policy include property and liability coverage’s with optional coverage’s at request. Many of the standard conditions and exclusions apply on your BOP policy, which is a self-contained, complete insurance package policy.
So let’s dive into what exactly this program is and what it has to offer and what to expect.
Expectations of Business Insurance
BOP forms are modeled after the coverage components of the commercial package policy program, and have similar exclusions and coverage’s A, B, and C of the Commercial General Liability coverage policy.
The same wording, organization of coverage’s, and design follow the CPP. BOP program coverage parts are attached to the policy declarations and a business owners common conditions form.
ISO has made recent changes in the BOP program as of the year 2002.
Coverage and Protection
Business owners’ coverage– a necessity for all small and medium-sized businesses.
This protection generally comes in packages that contain five or six fundamental coverage’s for a lower premium than individual policies would otherwise provide.
Before we examine each of the coverage parts lets look at the complete contract of a BOP.
First Policy Section
The first part includes what is called the policy declaration page, which includes the policy number, name of the insurance company, name of producer, name and address of the named insured, and the policy period.
Spaces are provided for a description of the operation, the form of the operation, locations of the described premises, and name and address of any mortgage holder.
Types of Coverage Options
The second part of this program within the contract is the Coverage form, and lastly endorsements are required to make any policy changes.
Remember to look for the limits of coverage which will be shown for buildings and for personal property.
Limits of insurance for optional coverage will be shown, and optional coverage’s will apply, only if the appropriate boxes are checked indicating that optional coverage’s apply.
Now moving into our next section, coverage’s on your owners policy.
Casualty and Liability
Casualty and liability coverage provide protection in the event that your employees or products cause harm to customers and others, or to their property.
It addresses the fallout from a particular product that causes personal or physical damage; accidents such as “trips and falls”.The trip and fall incident must occur within a business location for be covered.
Some other incidents that are included on this program are: copyright infringement; slander; invasion of privacy; or if an employee cheats a customer or otherwise fails to perform expected duties that result in loss of sales or reputation.
Business-interruption protection covers losses that arise from reduced or halted operations, and provides compensation for ongoing expenses (such as salaries, rent/mortgage and utilities) and lost profits.
Insured losses are normally covered for up to one year after the initial occurrence, although individual policies may extend this time frame.
Property coverage covers a company’s headquarters and sales/production facilities, as well as their contents everything from inventory and supplies to money and machinery.
Even less tangible assets including trademarks can be covered. Fire, damage and theft are the most common types of protection.
Companies can mitigate their coverage premiums by taking steps such as installing alarms and sprinkler systems, as well as hiring security guards to protect against shoplifting.
Crime coverage covers robberies, burglaries or intentional destruction of property. It also protects against employee embezzlement and theft, and the loss of trade secrets or plans stolen by employees, contractors and others.
Precautionary devices such as alarm security and well-defined employee screening procedures generally reduce this insurance’s cost.
Flood or Earthquake
Generally, flood or earthquake coverage is considered as a specialized coverage, which depends on the company’s physical location or that of its production facilities.
In areas that are prone to such natural disasters, this protection can be both costly and difficult to obtain. Yet organizations such as the National Association of Professional Insurance Agents support federal legislation.
This legislation will be to coordinate a natural disaster catastrophe program. This program covers commercial and residential property and does not compete with the private sector’s capacity to provide insurance.
The type of risks that are eligible for this program are as followed:
- apartment buildings that do not exceed six stories in height and that do not have more than sixty dwelling units.
- office building that do not go over six stories in height and that do not exceed 100,000 square feet in total area.
- mercantile risk that do exceed 25,000 square feet and do not have annual gross sales that exceed three million.
- service or processing type risks that do not exceed 25,0000 square feet and do not have annual gross sales in excess of 3 million. This provided however, that no more than 25 percent of the gross sales are derived from off premises operations.
- operators are defined as tenants and are eligible under this program.
- residential condo associations and office condo associations are eligible. Service and processing risks are newly eligible for coverage.
- Self storage facilities
- Fast food and limited cooking restaurants up to 7,500 square feet.
- Convenience stores with gasoline sales of up to 75 percent of the total revenue
- Dry cleaners that clean on premises.
This program is designed to provide coverage for a variety of landlords and operators who have moderate exposures. For this reason, eligibility is defined to exclude certain risks which do not fit the intended exposure pattern.
Ineligible Risks for BOP
For every type of risk accepted under this program are risk that are not acceptable. Some of these risks are as followed:
- automobile dealers and all types of automotive repair and service operations
- banks and all types of financial institutions
- places of amusement
These type of risks all have certain and special exposures and is why they are listed on this unacceptable lists of risks.
These types of risk must be insured outside of the BOP program
After you have done all your homework, compared rates and prices to coverage options and availability, your ready to purchase. The page that you will find most convenient and helpful once you have purchased your policy is what is called a declaration page.
Coverage and Limit Information
The policy declarations will show your coverage information in addition to your limits of coverage. Very important if you are satisfying coverage for an additional insured.
If there are additional parties that you want to include on your policy, this is the page you will find this information on.
The great starting point on your policy program are your declaration pages.
If you have a simple question about coverage options, itemized premium breakdown, or who has been listed on your policy as an addition insured, this is where you will find this information.
Keep in mind that every time that you make changes to your policy, these changes will reflect on your declaration page.
For example, you may switch your additional insured several times throughout your policy term, this is where you would see the changes.
If you have any questions regarding coverage information or need help with Small Business General Liability Insurance in California, even if your operation is located in Ontario CA, or Riverside CA, we can help, CALL the BOP Specialists at 800-962-0085.
We offer affordable local car insurance and BOP coverage in California, Nevada, Arizona and, Texas!
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