Small
businesses are not left out when it comes to insurance coverage. While all types of insurance policies are openly available to these small
businesses, it is often too costly for most of them to operate. This is what an
insurance policy like the Business owner’s Policy (BOP) was designed to cater
for. BOP is more like a bumper package that comes included with several
insurance policies. These include property insurance, liability insurance, and business
interruption/continuation insurance.
While
this insurance policy is quite affordable for many small businesses, it does
have its limitations. It does not include health insurance, disability
insurance, worker's compensation, and professional liability. While the package
is suitable for small businesses, not all businesses are eligible for BOP.
Businesses with unique risks like a factory or jewelry store would need a more
customized coverage. BOP cannot cover the risks of such businesses. A BOP therefore,
is ideal for all home based businesses. These businesses usually begin with few
employees and as the business begins to expand, the coverage can be changed to
fit into the new structure of the business.
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