In insurance, knowing what is covered by a policy is just half of your homework. You also need to be clear on what isn’t covered. With that in mind, today we tackle a common question: What is excluded from a Business Owners Policy? Keep reading to find out.
What Is a Business Owners Policy?
Business Owners Policy Insurance (BOP) is a specialized form of insurance that bundles business property insurance and business liability insurance into a package created with the needs of entrepreneurs in mind.
Wondering if you need BOP? That’s easy to figure out. Business owners who need this type of insurance usually have the following thing in common:
- They own or rent a workspace.
- They have less than 100 employees.
- They own assets that could get stolen or damaged.
- They face the possibility of lawsuits.
Companies larger than 100 employees usually protect themselves by purchasing a commercial package policy or by customizing their insurance to tailor it to their needs.
What Is Excluded from a Business Owners Policy?
As mentioned above, BOPs provide two types of protection: business property insurance and business liability insurance. But what is excluded from a BOP?
Even if they are really convenient, BOPs don’t cover the whole gamut of risks you face as a business owner. As you work on your insurance strategy, it is important to keep in mind that BOPs do NOT cover the following:
- Professional liability
- Auto insurance
- Workers’ compensation
- Health and disability insurance
However, you can purchase all those coverages separately to craft unique protection for your business depending on your industry and the size of your company.
If you don’t know what type of insurance or how much coverage your business needs, get in touch with our experts at Delgado’s Insurance. We’ll be glad to assist you and answer all your questions.
To learn more about business insurance, check out our previous blogs, “4 Facts You Need to Know About Business Owners Policy (BOP)” and “A Brief Guide to Commercial Auto Insurance.”
Delgado’s Insurance: Dependable Business Insurance in California
If you need dependable and affordable insurance in the Golden State, look no further than Delgado’s Insurance.
We have locations in Riverside, California, and Bloomington, California. Get in touch today by telephone (951-361-0084, 909-421-9003), email (mail@delgadosinsurance.com), or through our social media accounts (Facebook, Twitter)!
