Business Owners Policy - BOP
Simplify your business security
Business owners insurance, known as BOP, is a contract between a business owner and an insurance company, with the purpose of providing comprehensive protection against a variety of business risks. It is essential for small and medium-sized businesses, as it combines multiple coverages into a single policy, thus simplifying their management.
The main coverages include:
General liability
- Bodily injury and property damage - Damages to third parties: Covers bodily injury and property damage to third parties caused by the operations of the business. Includes medical and legal expenses related to claims for injuries or damages that occurred on the business premises or caused by products and services offered.
- Advertising and personal injury: Covers claims of defamation, slander or copyright infringement in the company's advertising activities; nonphysical damage caused to a person.
Commercial property
- Business Structure - Building: Covers the repair or reconstruction of the main building and additional structures, such as warehouses or garages, in the event of damage caused by covered events, such as fire, storms, lightning, vandalism and theft.
- Personal property: Covers the repair or replacement of property within the business, such as inventory, equipment, furniture and tools, in the event of loss or damage due to covered risks.
Business interruption
- Loss of income: Compensates for the loss of net income when the business must temporarily close due to property damage caused by covered events. Includes compensation for loss of profits and ongoing operating expenses during the interruption period.
- Extra operating expenses: Covers additional expenses necessary to keep the business running during the interruption, such as renting temporary space or the cost of operating in a different location.
Professional liability - Professional responsibility
- Errors and Omissions - E&O: Protects against claims for damages caused by errors or negligence in professional services provided by the business, such as advice, consulting or technical services.
Electronic equipment and machinery - Equipment breakdown
- Repair and replacement: Covers the costs of repairing or replacing electronic equipment and machinery essential to business operations, which are damaged due to mechanical or electrical failures.
Against crimes - Crime
- Theft and fraud: Protects against losses due to internal or external theft, fraud and financial mismanagement. Covers loss of money and securities resulting from criminal activities committed by employees or third parties.
Commercial auto - Commercial vehicles
- Damage and liability: Includes coverage for vehicles used in the business, covering damage to own vehicles and damage to third parties caused by accidents. This coverage extends to vehicles owned by the business for commercial use.
Natural disaster damage
- Flood: Generally, not covered under standard BOP insurance and requires a separate policy. Flooding can be a considerable risk; it is crucial to consider this additional coverage.
- Earthquake: As with flooding, earthquake damage requires additional specific coverage as it is not included in the standard BOP policy.
*It is important to keep in mind that the terms and conditions of the insurance companies may vary for each coverage. Therefore, it is essential to review carefully to fully understand the extension and any exclusions that may apply.
