What is Florida Business Owners Insurance?
Florida Business Owners Insurance, also known as BOP, protects the owner of a business from property and liability losses. This insurance is distinct from commercial property and commercial liability insurance which provides coverage only for either property or liability perils. The Business Owners policy bundles both of these coverages into one policy, and also provides options for additional ancillary coverages.
What does Business Owners Insurance cover?
Florida Business Owners policy provides both commercial property, and commercial liability coverage under one policy. This policy is designed primarily for small to medium sized businesses. The most basic form of Business Owners Insurance covers fire and liability insurance. More inclusive policies include coverage for water damage, theft, and other enhancements.
What are additional coverage options?
The Florida Business Owners Insurance policy has additional coverage options. In many cases, these endorsements can be added for a relatively small additional premium. Some of the more common options are:
- Enhanced Liability Insurance – allows the insured to opt for a higher limit of liability coverage.
- Flexible Property Coverage – allows the insured to customize the level of property coverage to fit the needs of the business being insured.
- Business Interruption Coverage – includes coverage for loss of earnings caused by a covered loss.
Is Business Owners Insurance Mandatory?
Although Florida Business Owners Insurance is not mandatory, the coverage is required under certain circumstances. In most cases, the terms of a commercial lease will mandate that the business owner obtain specific types of insurance coverage. Usually, the standard Florida Business Owners insurance policy will satisfy these requirements. Also, sometimes BOP coverage is required when a business owner secures a loan or a line of credit from a financial institution.
Does Business Owners Insurance have a deductible?
All Florida Business Owners policies have deductibles on the property coverage contained in the policy. The insured may elect to increase the deductible in order to lower the cost of the premium.
Are there discounts available for Business Owners Insurance?
Numerous discounts are available on Florida Business Owners insurance policies. These discounts vary greatly and are often based on the construction and safety features of the insured property. Some of the more common discounts are:
- Safety Devices – the installation of alarms and sprinkler systems results in substantial discounts.
- Construction Discounts – buildings constructed with superior materials, as well as fire resistant construction, are subject to policy discounts.