Saturday, September 16, 2017

How business owner’s policy different from general liability?

PolicyMany common accidents to third party individuals or damages to their properties occurring within the peripheries of one’s business that attracts a lawsuit seeking compensation fall under general liabilities. A business owner will find it important to secure their business against general liabilities but to a large extent will not have covered it against other liabilities. In this case, a business owner’s policy (BOP) comes in to cover their business against many aspects put together.

A business owner’s policy is a package covering all the needs of a specific business model and is considerate of all other liabilities a particular business may encounter. A BOP in this sense is not universal but rather centered to solving liability issues pertinent to a specific business needs; all under one umbrella. It represents the minimum coverage for most common source of losses for a specific business that makes it more convenient for the owner to cover them as a block.

A business owner policy will vary from one business to another depending on their risks exposure. This is important for both the owner and the insurance providers since the unprecedented risks for a particular business can be scrutinized per say and then an appropriate coverage devised at minimum cost. The cost related to insuring a business owner policy is thus greatly reduced since many liabilities are factored together as one scheme and therefore saves the pocket of the business owner as well as make it convenient for the insurance provider.

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