Business Owners Policy (BOP)

Let’s dig into the coverages a business owners policy provides.

General Liability Coverage

Commercial general liability insurance protects you from common liability claims including:

• Property damage and bodily injury due to negligence.
• Personal injury (including libel or slander).
• Advertising injury (including damage from false advertising, slander, and limited copyright infringement).
• Other claims that arise from your business operations.

What’s covered by general liability?

This type of policy covers the cost of property damage or bodily injury that occurs on your business property or as a result of your products, services, or advertising. If you are sued or if damages are filed against your business, general liability coverage pays up to the limits of your policy for the following:

• Cost of defending or settling claims.
• Out-of-court settlement costs.
• Damages, if you are found liable.
• Judgments awarded by courts.
• Cost of investigation by insurance company and attorney expenses.
• Cost of bonds, if they must be posted due to the claim.

A general liability policy will also pay for medical expenses for injuries sustained by nonemployees. Medical expenses for smaller medical claims can be paid without legal action which results in prompt settlement since no litigation is involved.

You can learn more about general liability insurance here.

Commercial Property Coverage

Imagine a fire breaks out and you lose your entire inventory. Or your business is burglarized causing physical damage and possibly lost assets. Your ability to recover from these incidents is dependent on your commercial property insurance.

In case of catastrophes like fire, explosion, theft, or vandalism, property insurance helps cover your costs, whether it’s to repair damaged property or replace what you’ve lost. In addition, property coverage can provide business interruption income coverage if a covered loss forces you to close your business for an extended period of time. Protecting your business property ensures your peace of mind if a disaster occurs. Coverages might include:

• Building & Personal Property
• Builders Risk
• Business Income
• Extra Expense
• Legal Liability

Note that in Mississippi, you’ll want to give special consideration to where your business is located. The Mississippi Gulf Coast is prone to hurricanes, tropical storms, wind and hail damage, and flooding. Insurance companies see this as an increased risk, so deductibles for these types of claims are usually higher.

The same goes for flooding. Floods are common all over Mississippi, so you will definitely want to consider a separate flood policy to protect your property. No business owners policy or commercial property policy is going to cover the cost of flood damage. You’ll need a standalone flood policy.

You can learn more about commercial property insurance here.

Business Interruption Coverage

Business interruption insurance is a type of coverage that helps a business recover from financial losses resulting from a covered event, such as a natural disaster or a fire. It typically covers lost income and the extra expenses that a business incurs due to the interruption. Think of costs like temporary relocation, employee wages, and other expenses that allow your business to continue operating during a disruption.

Business interruption insurance is an essential component of a business owners policy (BOP) or can be purchased as a standalone policy. It’s designed to help businesses survive unexpected events that disrupt their operations and can provide a financial safety net during difficult times. Suppose a natural disaster destroys your business’s physical location; business interruption insurance can help cover the costs of finding a temporary place and continuing operations while your property is being rebuilt. It can also provide income to help pay bills and meet financial obligations during the period of disruption.

Where do I start?

Business insurance in Mississippi can be a complex process of finding the insurance policy that best fits your needs. We’re here to help you identify your potential risks and liabilities and then work with you to tailor a policy that will protect your business. Let’s get started protecting what’s yours.