When you buy homeowners insurance, your policy might insure both your house itself, as well as other, or detached, structures on the property. However, when you buy a business owners policy, or a BOP, you might not find the same coverage listed in exactly the same way. All the same, you’ll probably want to insure all the buildings on your property, from your main premises to other structures. How is the appropriate way to do so?
BOPs contain property insurance, and they usually make ample accommodations for the property your business owns. However, when necessary, make sure you tell your insurance agent about the particular structures on your property. This can help them determine the coverage that your business needs.
BOP Property Insurance
A BOP offers several critical types of commercial insurance within one package. One of the primary types of protection it will offer is structure or building insurance.
If you own the property from which your business operates, then you will likely need this structure coverage. Should a covered event, like a fire or severe storm, damage the building, then the property coverage provided by your BOP might help you pay for repairs or reconstruction.
Besides the building alone, your property insurance can extend to various other features of the business, such as:
- Permanently installed interior fixtures and machinery
- Permanently installed exterior features
- New construction on the property that is not complete
- Appliances used to maintain the building
However, if you have structures that are separate from the main building, then you might wonder if your policy covers these items as well. In many cases, your coverage can. You therefore might not have to do anything extra to ensure all the buildings on your parcel or property. Still, you must likely disclose this property to your insurer to make sure the coverage will apply. The insurer will want to know that a structure exists, so they can measure appropriate risks associated with it.
Extending Your Property Coverage
In addition to the basic property coverage offered by a BOP, you might be able to add additional or optional coverage to your package. To cover certain other structures on your property, you might have to look this direction to ensure you get the right protection.
Primarily, you might need to add coverage for outdoor property and signage. This coverage can extend to things like your fences, signs, certain shrubbery, and other assets. Because these items are not attached to your buildings, in most cases, then you might have to add specific coverage into the BOP later.
Also Read: 4 Must Have Business Insurance Policies