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Business Owners Policies (BOP) bundle insurance coverage for Main Street types of businesses such as apartments, offices, retail and service businesses. Call your agent at Donnelly and Sproul for eligibility in New Jersey.
The BOP design includes major categories of coverage, such as:
• Buildings. Coverage for buildings includes permanent fixtures such as machinery attached to the floor, building personal property such as fire extinguishers, and materials and supplies used to build additions before they are attached to the building.
• Business Personal Property. Not only are contents covered that belong to the business, but consignment items, samples in cars, tenant improvements and items in the open within 100 feet of the building, like a sidewalk sale.
• Business Interruption. If a loss occurs causing a loss of revenue or requiring a relocation of operations or temporarily closing, this coverage pays the loss of revenue or additional expenses to continue operations usually up to twelve months.
These basic categories of property covered are subject to the limits on the policy and the covered perils. Broad form perils cover the standard fire, lightening, windstorm, hail, riots, theft, smoke and falling objects to name a few. Special form covers any peril not excluded, such as rot, wear & tear, war, & nuclear.
Additional coverage automatically attached:
• Extra Expense. The insurance company pays to minimize down time after a direct loss. Shutting down or moving the operation may not be necessary, but extra costs may be involved to minimize business interruption. The company will pay for these costs. An example would be bringing in heaters or generators after an electrical fire to keep the business open while repairs are completed.
• Similarly, coverage can be extended to loss of a dependent property, such as a supplier. If a direct loss occurs to a supplier of goods or services on which your business depends, the insurance company will pay up to $5,000 for your loss of income from any disturbance to your business as a result of your supplier’s problem after a three day waiting period.
• Property at Newly Acquired Premises. Acknowledging that opening a new location or storage facility creates busy times, the business owner may not remember to call the agent to increase coverage or add a location. This coverage extends coverage for property located at a new location for thirty days. Building coverage is limited to $250,000 while personal property is limited to $100,000 per new location.
• Personal property off premises but not at a new permanent location, for example sales materials or samples, are covered up to $1,000.
• The building coverage extends to include a limit for outdoor property such as fences, unattached signs, landscaping, or antennas. Each tree or bush has a sublimit. Perils are limited to fire, lightening, riots, explosions, and aircraft.
• Personal property of employees, owners, or customers on premises are covered except for theft as an extension of personal business property.
• Valuable papers and records coverage pays for the cost of replacing these items after a direct loss.
• Similar to valuable papers coverage, Accounts Receivable records and damages incurred by the loss of these records are covered.