Commercial Property Insurance for Small to Medium Size Businesses – Use a BOP When You Can

Posted on March 10, 2020 by admin
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So, you have a Small-to-Medium-Sized business, you own a commercial building, and have some business contents that have value. Great! You call your insurance agent, tell them how much insurance you think you need to buy and some details about what you’ve got, pay a premium, and that’s that. Seems simple enough, right?  Well, like everything, the details matter and there is a lot more to know about how a BOP and commercial property insurance works and how they can protect your business.

Assuming your commercial building and business personal property qualifies from an underwriting standpoint, a properly-written commercial property insurance policy can cover losses from most direct physical damage (with certain exclusions applied).  The costliest and most common insurance claims that affect commercial property owners are:

  • Theft and burglary
  • Water and freezing damage
  • Wind and hail damage
  • Fire

Additionally, insuring for perils such as Flood, Earthquake, and Terrorism are often made available as options.

Several of the insurance companies that Rooney Insurance Agency represents offer qualifying Small-to-Medium-size Business owners a wide variety of property insurance policies to choose from.  The most popular are those that group several different coverages together in a single “package.”  The advantages of packaging coverages together are many, and include lower premiums and a broader list of risks insured.

One of the ways we provide value for the policyholder, whenever possible, is that we recommend what is generally referred to in the insurance industry as a Business owners Policy (BOP).  Most BOP style policies are written to include three important coverages in one policy:

Business Property Insurance – Protection for your building or office space, as well as property owned by your business, such as equipment and inventory.

Business Liability Insurance – Coverage for costs that arise if someone is injured at your business or by using your products or services, including the costs of defense and damages awarded.

Business Interruption Insurance  – Also known as Business Income Insurance, this coverage replaces lost revenues in the event that your business has to shut down due to a covered loss.

You can often customize your Business Owners Policy (BOP) to address your company’s unique risks. Depending on the classification of your business, other items that can be often be covered include:

  • Professional Liability Insurance
  • Employment Practices Liability Insurance
  • Hired & Non-Owned Auto Liability Insurance (typically needed only when the business doesn’t have a commercial vehicle to insure)
  • CyberSecurity Liability Insurance

Not all Small-to-Medium-Size businesses will qualify for a Business Owners Policy (BOP).  Many types of business industries are not eligible, but don’t let that discourage you because many insurers will customize a package policy for your specific business.

All businesses need good Commercial Property Insurance coverage, and we can help.  Securing a comprehensive insurance  plan is important to protect your business. Be sure to establish a plan tailored to fit the exact needs and risk exposures of your business. Since every business is different, there are unique risks as it delivers its products or services to customers.

Working with a quality insurance agency and insurance carrier, your business will be evaluated carefully, considering the specific circumstances and operations that define the business operations. For adequate protection, you need comprehensive insurance solutions that provide coverage from both expected and unforeseen risks.

About Rooney Insurance Agency

Rooney Insurance Agency, established in Tulsa, Oklahoma in 1960, has provided customized business and personal insurance and employee benefits solutions to individuals and businesses in the state of Oklahoma and throughout the United States. We work to ensure that each client’s insurance coverage fits their specific needs, addresses their key risks, and protects their valuable assets. For more information on how we can help you today, contact us at (918) 582-0565.