Texas Business Owner’s Policy (BOP)
A Business Owner’s Policy (BOP) combines business property and business liability insurance into one convenient policy. A BOP helps cover your business from claims resulting from things like fire, theft or another covered disaster and from claims involving bodily injury, property damage and personal and advertising injury that could arise from your business’ operations.
Businesses can tailor a Business Owner’s Policy (BOP) to help meet their unique needs by adding optional coverages like data breach, business income for off-premises utility services and other specialized coverages to their BOP.
Who needs a Business Owner’s Policy?
You should consider a business owner’s policy if:
- Your business has a physical location, whether it’s out of your home or a rented or owned office, store or other work place.
- There’s a possibility of you being sued – for example, by a customer who was injured at your work place.
- You have assets that could be stolen or damaged – whether they’re digital assets, customer data, equipment, furniture, cash or inventory.
What does a Business Owner’s Policy (BOP) typically include?
- Business Property Insurance
- Business Liability Insurance
- Business Income Coverage
There are additional coverages that you can add. Here are two popular optional coverages that are frequently added to a Business Owner’s Policy:
- Professional Liability (Errors and Omissions) Coverage
- Data Breach Coverage
Texas BOP: Why Do You Need One?
Business Owner’s policy is essential because it provides the best levels of protection to you and your business. For example, think about what would happen if someone sued you for $100,000? If there was only a liability policy limit of $500,000, then you might find that your company assets are at risk or even that you have to foot part of the claim. Why risk all of that? The smart move is to make sure you are adequately insured BEFORE the day something terrible happens.
There are many ways a Texas BOP can help protect your company. Here are some examples:
Protection for damage to other people’s property,
This could happen if you build a home and something collapses on the site. Or, perhaps your company made something defective that caused damage to someone else’s property or goods. A BOP provides coverage for this type of claim.
Protection for injuries to others,
This could happen if you were to cause bodily injury (such as a car accident) or property damage to someone else through negligence. If this occurs and you do not have the right level of protection for your company, you could find yourself financially responsible for damages resulting from such an incident.
Protection during construction projects.
Many construction companies have a standard Errors and Omissions policy, but this typically does not provide adequate protection if a contractor causes bodily injury or property damage. The BOP would cover such claims. If you are a company that offers a service rather than makes a product, consider an E&O policy as well as the BOP.
The BOP is a package policy that can also be used with an E&O (Errors and Omissions) policy when you consult work. For example, suppose you consult for another company, and they get sued because of something you did or didn’t do. In that case, this coverage could pay the legal expenses to defend your actions and pay damages awarded to the claimant(s).
A BOP can also provide coverage for defense costs if you get sued because you are doing business. For example, if one of your clients sues your company, this policy would pay for your attorney’s expenses to defend against the claim. It would also indemnify (reimburse) you for damages the court awards to your client.
If you do business in Texas, and especially if you practice consulting for other companies, we strongly recommend that you get a Texas BOP (Business Owner’s Policy). Contact us to help answer all of your questions about this policy.
Taking an extra layer of protection can never hurt, and in this case, it can potentially save your business from several unpleasant situations. Most business owners are aware that they need to have liability insurance. Still, their company is in jeopardy if someone decides to sue for something that wasn’t covered by the policy. This is where a Texas BOP comes into play and why you need one.