More About BOPs

Q: What’s excluded from a BOP?
In general, your BOP will not cover:
  • Workers compensation insurance
  • Earthquake insurance
  • Flood insurance
  • Group health, life and disability insurance
  • Auto insurance for company-owned vehicles
  • Employment Practices Liability insurance
  • Professional Liability insurance
  • Errors & Omissions insurance
  • Malpractice insurance and other specialty coverages
Q: How do insurance companies determine BOP premiums?
Pricing policies will vary according the carrier you choose. However some of the more common factors in determining your insurance rate will include:
  • Type of business
  • Location
  • Coverage amounts
  • Age and construction of your building(s)
  • Security devices such as alarms and sprinklers
  • Potential fire hazards in your immediate surroundings
  • Your business' claims history
  • Your years in business and management experience
  • Your financial stability and creditworthiness
Q: Can I deduct as expenses the equipment and supplies I purchased for product development, even though I haven’t sold the new product yet?
As a rule, if you are developing a product for sale with intention of eventually making a profit (as opposed to making something as a hobby), you will be able to deduct expenses even if you make no sales. As always, check with your tax advisor for details.

Q: If I have a small company, do I still need Business Owners insurance?
Absolutely. The size of your business isn’t the issue here; it’s about the risks you are inherently exposed to when you own a business. Commercial insurance is intended to protect you from many of the risks your business can face, including:
  • damage to the vehicles you use for your business
  • damage or destruction to your office equipment or inventory
  • loss of income if your business is temporarily closed because of a covered loss
  • certain business related liability exposures such as, wrongful entry or search, libel, slander and even certain offenses arising out of your business’ advertising
  • risks to your cargo while in transit or storage
  • theft or loss of tools and equipment
  • crime coverage including robbery, burglary, even employee theft
Q: I’m self-employed and work from home. Do I still need a Business Insurance policy?
It doesn't matter if you're desk is in the laundry room of your house or you work out of your car. The types of business insurance policies available span all size businesses and encompass issues from trivial to significant. What’s important to remember here is that even the most common and everyday practices can go wrong to a degree that can disable your business. Protect yourself and you won’t have to worry.

Q: What are some of the protections I can expect from a Business Owner's Policy?
In general, a Business Owner's Policy combines property insurance and general liability insurance into one package designed to suit the size of your operation. The property component covers the physical parts of your business, from the building itself to its contents. The liability component protects you from claims and lawsuits that result from another person being injured either at your place of business or as a result of your business’ operation or products. It also covers claims for personal injury, such as invasion of privacy, wrongful eviction, libel, slander, false advertising. Typically, the cost of legal defense and court fees as well as settlements or judgments against your business are covered.