Business Owners Insurance Policy (BOP)

The Business Owners Insurance Policy (BOP) is intended for main street businesses and combines building, personal property, and liability insurance coverage with other attractive options into one package.   The BOP is an efficient way to provide the business owners insurance coverages that most small businesses need.

We will provide a risks assessment, custom build a Business Owners Insurance Policy that meets your needs, and shop the companies to get the best value for you.   Give us a call, request an email quote, or visit us to get the best insurance protection and services for your business.

Are You Eligible for a BOP?

The two keys to BOP eligibility are type of business and square footage. General examples:

• apartment buildings
• office buildings
• buildings used primarily for mercantile, service or processing purposes
• wholesalers
• contractors
• mixed use, e.g., stores in an apartment building.

Square footage guidelines can relate to overall building space or a business’s rental space. Generally, the cutoff for a Business Owners Policy eligibility is 25,000 square feet; however, this varies between business insurance companies.  We will determine if a business is eligible for a BOP and if the BOP option is the best value.

BOP Coverages

Business Insurance Personal Property Coverage

Business personal property coverage can include:

• a building owners’ business personal property in an apartment building
• office business personal property
• business personal property for merchants, wholesalers, and service or processing organizations
• commercial condo unit owners.

When you own a building, the same Business Owners Insurance Policy must cover both the building and the business personal property. Otherwise business personal property can be insured alone in a BOP. This is good for businesses that lease or rent space.

Different BOP Forms

The BOP named peril form will:

• have coverage for a dozen or so perils such as fire, lightning, windstorm and hail, sprinkler leakage, and vandalism
• usually cost less.

The Special peril form will:

• have coverage for all risks of direct physical damage except as limited in the policy
• have broader coverage than one setting forth specific perils.

Additional Coverages

By nature, the Special form has more coverages built in. The Standard form has approximately a dozen additional coverages.  Among these are:

• debris removal
• counterfeit money orders and paper currency
• increased cost of construction
• forgery exterior glass and lettering (this includes replacement and repair of items on the outside of the building, commonly advertising-related materials)
• collapse and water damage.

Don’t worry, we’re not ignoring loss of business income and extra expenses from a direct insured loss. Frequently a loss from a fire or other insured peril goes beyond the direct damage caused by the fire. Even minor damage can close your business for a long time. This means your business has no income to maintain salaries and other expenses. Don’t ignore loss of income protection!

Insurance Tip.  Business interruption coverage is not a luxury.

Coverage Extensions

Recall that extensions are an opportunity for you to have certain property covered after a loss. Extensions are controlled by:

• a limit on expendable dollar amounts
• an after-the-fact additional premium, or
• a territorial restriction.

The ISO BOP’s make provisions for the following:

• newly acquired property
• personal property off-premises
• outdoor property personal effects (non business property)
• valuable papers and records
• collapse and water damage.

Coverage is limited in these areas. You may need specific insurance to cover one or more of these extension areas for your business.

Exclusions & Conditions

Exclusions and conditions are common in insurance policies. BOP’s are no exception. You’ll find some exclusions and conditions from policy to policy, regardless of the type of insurance. Conditions are normally procedural matters and loss adjustments. Exclusions are matters the insurance is not designed to cover.

Note. Remember an insurance policy must be read as a unit, not as independent paragraphs or sections.

“One policy does not fits all business insurance needs.”  Business  insurance needs are all different.  Everyone has a different type of property, amount of property, location, ownership, and so on. Your insurance coverage protection should closely reflect your risk of loss.   This customized approach allows you to save money– you pay for only the insurance you really need.

Protect Against Liabilities

We will provide a risks assessment, custom build a Business Owners Insurance Policy that meets your needs, and shop the companies to get the best value for you.   Give us a call, request an email quote, or visit us to get the best insurance protection and services for your business.

Why Baughman and Associates?

Located in Forest, Virginia, Baughman and Associates is a full-service Independent Insurance Agency that represents many top-rated companies. We assess risks, develop strategies and shop companies to find the best coverage for the price.

Companies we represent include: Loudon Mutual, Foremost, National General, Northern Neck, State Auto, Travelers, and others.

For our clients’ convenience, our Agents are available for both policy questions and claims consultations during regular business hours.  We also operate on an appointment basis.  Have an after-hours claim or emergency?  …our Agents are available by cell.

At Baughman and Associates, we are dedicated to providing the most exceptional and timely customer service in the industry!

Baughman and Associates provides Commercial Insurance and Personal Insurance services in Virginia. Call, request a quote by email, or visit us at our office today for a free, no obligation risk assessment and quote.  Let us do the research and find the best insurance value for you.

Insurance for Different Business Types

On the right sidebar of this page, we have links to a number of business insurance resources.  Click on any of the different business types to learn more about the insurance coverages for that type of business. Please call one of our commercial insurance agents at Baughman and Associates for any assistance.

About Al Baughman

Al Baughman, AIM, LUTCF, is a graduate of Virginia Tech and began his insurance career in 1974. He spent his first twenty-six years with a direct writer, serving both corporate operations and local agency sales.

Al founded Baughman & Associates as an independent Agency in August 2000, as an alternative for clients with complex portfolios. Our focus is Property & Casualty, Commercial, Life, Contractors, Business Continuation and Excess & Surplus lines. Our carrier partners are rated “A” or better by AM Best. These carriers are providers of comprehensive and competitively priced products. Their Service and Claims technology and are second to none!

On the personal side, Al and his wife Debbie are Bedford County residents. When you do business with Baughman & Associates, you are helping to strengthen our community by supporting local charities. Included are The Salvation Army, The Exchange Club of Lynchburg, Daily Bread, Parkview Mission, Patrick Henry Family Services, area fire, rescue and law enforcement departments, area churches and scouting…just to name a few. Why not do business where your dollars are invested in your community?

Thank you for calling us today to schedule your insurance Portfolio Review!