Business Owner s Policy (BOP)

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1 A. BOP: What It Is B. BOP: Why You Need It C. BOP: What It Covers D. BOP: What It Costs E. BOP: Coverage Options F. BOP: Claims G. BOP: How To Buy It H. BOP: 10 Good Things To Ask About Business Owner s Policies (BOP)

2 (A) Business Owners Policies (BOP) What It Is A business owner s policy (BOP) protects small businesses in much the same way that a Homeowner s insurance policy protects your home and personal possessions. By combining two of the most critical coverage s* for small businesses a BOP can save you money while safeguarding anything you ve worked so hard to build. * Two of the most critical coverage s for small businesses are: 1) Property Coverage While every business is unique, many businesses own or lease property that is vital to their day-to-day operations. In the event of a loss, property insurance not only provides coverage for damage to your building and furniture, but also your inventory, computers, equipment, and other property you need to keep your business running. 2) Business Liability Coverage Business Liability coverage typically protects your business from claims for damages caused by your employees, products, and services. It also helps cover the cost of your defense. And it s important to keep in mind that the type and amount of liability coverage you need may vary based on the type of business you own. (B) Why You Need It Your business is an extension of who you are and a reflection of all you ve accomplished so don t let things like injury to others, or damage to property of others, harm it. A BOP combines essential insurance coverage s. And it also offers the flexibility to purchase optional, additional coverage, helping to protect your assets so you can concentrate on what matters most running your business. 1) Be prepared for the future It s hard to know what ll happen in the long run. That s why it s important to protect your business with a policy designed to meet its unique needs. 2) Property Coverage No matter how careful you are you can t control everything. Unexpected events such as fire or vandalism can and do happen. Adequate property coverage could mean the difference between complete catastrophe and a minor blip. 3) Business Liability Even careful business owners can have their businesses become the subject of a lawsuit. And, even if the outcome is in

3 your favor, the legal costs of a suit can be staggering. That s why it s important to have business liability coverage. It protects your assets if your business is sued for causing bodily injury to others or damage to the property of others. It even helps cover the cost of your defense. NOTE: Data Breach Incidents on the Rise If your business handles or stores any customer, patient and/or employee data, you re at risk of a data breach and should consider purchasing Data Breach coverage. Look for coverage that includes access to resources to help reduce the likelihood of a breach, and offers expert assistance if one were to occur. (C) What It Covers Don t let the unknown destroy what you ve built. A typical BOP provides liability insurance and protection for your business property. But businesses are different. An insurance program tailored to your specific needs could be the difference between a dream-come-true and a nightmare. 1) Understanding the basics of standard coverage A BOP generally provides three types of coverage for your business: Property insurance covers buildings and contents owned or leased by your business. Liability protection covers your business in the event it s found responsible for causing harm to a person and/or property, and helps to cover the cost of your defense. Business interruption insurance covers the loss of income when your business is not operational due to unexpected damage or events so you can continue to meet your financial obligations such as rent and payroll. 2) It s all about options A basic BOP covers the most common property and liability threats our business faces, but don t forget to consider coverage options that can help tailor an insurance program that meets the unique needs of your business. Often time, these additional coverage s can be purchased separately or bundled as part of a cost-effective package.

4 (D) What It Costs How much your coverage costs depends on your business and your needs. Several factors are used to determine how much you ll need to pay for your BOP. These include, for example, the type of business you have, where it is located, the square footage you occupy, annual sales/payroll and the coverage and coverage limits you select. NOTE: Managing the cost of your business insurance Keep these valuable tips in mind when discussing insurance costs with your insurance representative. Higher deductibles reduce your premiums. Multi-Policy Credits might be available if you purchase a Workers Compensation or Commercial Auto policy through the same insurance company that s providing your BOP coverage. Talk to your insurance representative and keep him or her informed of any changes to your business. Opening a new location? Changing your service offerings? Making a new equipment purchase? Keep your insurance representative up to date as changes occur so your coverage can evolve along with your business. (E) Coverage Options Your business needs are unique. A BOP gives you peace of mind of having key coverage that helps protect you from typical property losses and liability claims. But that may not be enough. Be sure to speak with your insurance representative about additional coverage s you may need based upon your unique business needs. Don t get caught unprotected. Every business is different. For example, a healthcare provider requires insurance coverage s that is entirely different from a florist. Both of these businesses have specific needs that are not covered under a typical BOP. The right insurance could save you from financial disaster. That s why optional coverage s are important. They allow you to tailor an insurance program specifically for your business helping to make sure you re protected no matter what happens. Coverage Options:

5 1) Computers and Media provides coverage for computer hardware and software and extends to loss caused by viruses, blackouts, etc. 2) EPL protects you from the impact of employment related lawsuits. 3) Accounts Receivables covers cost to replace destroyed accounts receivable records. 4) Employee Dishonesty coverage financial loss due to employee dishonesty or fraudulent acts. (F) Claims What to do when the unexpected happens. If faced with a property or liability claim, contact your insurance company immediately to report the incident. The sooner a claim is reported, the sooner it can be resolved, so you can get back to business. Keep in mind that most insurance companies offer 24/7 claim reporting services. Being prepared can make all the difference. No business expects to make an insurance claim. By being prepared both before and after a loss you can help protect your business and get back on your feet more quickly while making the claim process as easy and hassle-free as possible. Don t be a statistic. Take control. There are many reasons why some small businesses fail don t let inadequate insurance coverage be one of them. Talk to your insurance representative about coverage s and limits that can help protect your business. Roll over the hotspots for examples of extra coverage s that you might want to consider for your business. Be prepared for the unexpected. While insurance provides protection for covered losses, being prepared helps ensure a speedy resolution. Rollover a helpful tip to find out more. 1) Take stock of your property. Identifying your property and values is key to resolving many claims. So before a loss, take a full inventory of all your stock and business property. In addition, keep records, receipts, and bills of all items purchased for your business. Take photos or videos to support your written records. 2) Contact your insurance representative. In the event of an incident, contact your insurance representative immediately to report your loss. 3) Document your losses. Make a list of damaged or stolen property and its value. If possible, also locate supporting documentations and original purchase invoices. Be sure to keep all expense receipts for emergency

6 repairs made prior to the inspection of your business by a claims adjuster and for additional expenses incurred during the claims process. 4) In the event of theft. Notify the police immediately and make sure to obtain the case # or incident report #. (G) How to Buy It 1) Choose your coverage carefully and feel confident if you need it. Begin by making sure your insurance representative understands your business. This will make all the difference when selecting coverage and coverage limits for your business. And let him or her know as changes in your business occur (e.g. adding or eliminating a location, purchase of new equipment). This will help ensure that your coverage and business evolve together. Specialized coverage that s tailored to your small business. Your business insurance program should be designed to meet your unique needs and to help safeguard you, your business and your employees, while ensuring the overall security of your business. Spoilage Perishable Medicine and Medical Supplies this coverage is great for a medical practice. It provides peace of mind for potential loss of perishable medicines due to power and refrigeration outages or breakdowns. Hired & Non-Owned Auto this coverage ensures that employees are covered in the event of an accident when using their personal vehicles for business. 2) Trusting your insurance company. Equally as important as the coverage you purchase, is the insurance company you select to help protect your business. Make sure to look for an insurance company with a proven track record of stability and trust. And they should also offer you easy service solutions that demonstrate a respect for your time, such as 24/7 claims service and online service options, like online bill pay. Expertise and Value. A BOP is a cost-effective way to protect your business with the convenience of one policy. Look for an insurance company that offers a BOP with broad property and liability coverage and includes value-added coverage s at no additional costs. They should also offer flexible options that address your unique needs allowing you to

7 purchase optional coverage s separately or in cost-effective packages so that you re receiving the best value for your insurance dollar. Did you know? Business trade associations can offer insight on insurance programs designed specifically for your type of business. (H) 10 Good Things To Ask About Business Owner s Policies Talk to your agent: the West Virginia Medical Insurance Agency, Steve Brown, Agency Manager 1) Is a BOP right for my business? Not every small business qualifies for a BOP. Factors such as the type of business and annual revenue affect eligibility. If your business is not eligible, your insurance representative will assist you with alternatives. 2) In addition to the basic BOP, what other coverage s do I need? A basic BOP provides coverage for threats common to most small businesses. Ask about additional coverage s available that can meet the unique needs of your business. 3) How do I purchase any additional coverage s I need? In most cases, additional coverage s are added to the BOP through a process known as endorsing the policy. Look for an insurance company that gives you the flexibility to purchase optional coverage s separately or in cost-effective packages. 4) What types of things are not covered by a BOP? It s important to know what your policy doesn t cover. For example, a BOP does not cover your employees for work-related accidents or illnesses. Ask your insurance representative to explain what s not covered and to suggest additional coverage s you may need. 5) How can I be sure I have insurance that helps protect me from new threats to my business? Look for an insurance company that offers you coverage solutions to help proactively minimize risk to your business like Data Breach coverage. 6) How can I be sure my policy will change as my business needs change? Your insurance company should offer coverage options that are flexible enough to meet your evolving business needs. Keep your insurance representative up to date on changes to your business (e.g. adding/eliminating a location, new equipment purchase, change in the type of services, products you offer) as they occur, but at a minimum, annually. This will help ensure your business stays fully protected. 7) What factors determine how much I pay for my BOP? Everything from square footage to coverage limits can affect your rates. Your

8 insurance representative will help you select an insurance program that s just right for you. 8) What can I expect if I have a claim? Find out how the insurance carrier handles claims and what s expected of you. Knowing process details can help you recover more quickly and aid the claims process. 9) What online service options are available? Look for an insurance company that demonstrates respect for your time by offering convenient online services solutions like online bill pay. 10) What online service options are available? Do they have a long history? Do they know your business? Are they A-rated? Ask your insurance representative, or go online to research for yourself. Look for a reputable, financially secure company with a demonstrated track record of stability and trust Ext Ext 22 steve@wvsma.org Web-site: wvmia.com Fax: Steve Brown, Agency Manager