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    California Business Owner's Policy

    California Business Owner's Policy

    Small business entrepreneurs rely on business insurance to run profitable businesses and protect their employees. SMBs employ approximately half of California's workforce, accounting for over 99% of all small businesses.

    In one insurance package, a Business Owner's Policy (BOP) covers all significant property and liability risks. This type of policy combines all of a business owner's essential coverages into one package. It is, however, commonly sold for a lower price than the total cost of the individual coverage. Read on to know more about California BOP.

    What Business Owner’s Policy Covers In California 

    A company owner's policy combines two policies to cover liability and property hazards, with different levels of coverage depending on your insurance provider. Below are the following coverage points of those with BOP.

    Third-party Bodily InjuryIf a customer is injured on your property, the general liability insurance element of your business owner's policy (BOP) can help cover medical costs and legal costs if a lawsuit is filed.
    Third-party Property DamageA BOP's general liability section can assist with the repair or replacement of damaged client property. It may also cover legal costs if a consumer files a claim for damages.
    Business Property DamageWhen your business property is damaged by fire, theft, or some weather-related calamities, the commercial property insurance element of your BOP can assist pay for the costs of repairing or replacing it.
    Product LiabilityIt is not necessary for property damage or consumer injuries to occur on your or your client's property. A company that manufactures, distributes or sells items might be sued if such products cause injury to people or property.
    Advertising InjuriesBusinesses and employees are covered by liability portions of BOPs if someone sues them over advertising injuries, such as libel, slander, or copyright infringement.

    Requirements For Acquiring A Business Owner's Policy In California

    Providers have different eligibility restrictions. Insurance companies may have requirements regarding the location of the business, its size, revenue, and the type of business. Most insurance companies, for example, only cover enterprises that conduct all of their operations on-site. 

    They may also have restrictions if a primary commercial property exceeds or falls below a certain size. Retail outlets, apartment buildings, small restaurants, and office-based businesses are typical business classes eligible for BOPs.

    Eligibility And Exemptions When Getting Business Owner's Policy

    Since larger organizations typically carry a more sophisticated risk that necessitates customization, BOP insurance plans are typically sold to small-medium businesses in risk-free marketplaces. BOP liability coverage varies. However, most mainstream insurance carriers use the following terms:

    The Major Location's Size

    Small enterprises, such as factories and distribution centers, are covered under the Business Owner's Policy. Businesses with annual revenues of less than $5 million can qualify for business owners' policy insurance. 

    Employees' Number

    BOP insurance may be available to businesses with fewer than 50 employees; however, businesses with more than 50 employees may not be eligible. The fewer employees a company has, the more likely it is to qualify for BOP insurance.

    Quick Business Owners’ Insurance Statistics In California 

    Over 99% of firms in California are small enterprises, and these businesses account for nearly half of all jobs in the state. Small business owners depend on business insurance to manage profitable operations and safeguard their workforces.

    Business Owner's Policy (BOP) guarantees that businesses are protected by fundamental safeguards, including general liability protection, commercial property insurance, and business income protection. A few important statistics to know about business owners’ insurance in California and the US are as follows:

    • 40% of owners of small businesses are completely uninsured.
    • The majority of American businesses—75%—are underinsured.
    • More than one-third (35.2%) of people had an incident in 2016 that might have resulted in an insurance claim. The remaining two-thirds (64.8%) were incident-free.
    • The monthly cost of general liability insurance is only $42. The monthly premium for a business owner's policy with property coverage is $53, which translates to an annual cost of general liability of at least $500.
    • Even though three out of every four firms reported encountering an insurable occurrence in 2020, just around one in two small businesses reported making a claim.

    Frequently Asked Questions 

    Below are some of the frequently asked questions regarding business owner’s insurance:

    1. What is covered by company insurance?

    No one insurance plan has all possible coverage. There are generally two big coverage areas:

    • Business liability insurance protects you in cases where someone holds your company liable for losses, injuries, or damages.
    • Business property that has been destroyed or stolen is replaced or repaired thanks to commercial property insurance. It also covers buildings that you own.

    2. Is BOP a legal requirement for business insurance?

    Business insurance may be required by law in some circumstances. The majority of states mandate that companies with employees purchase workers' compensation insurance. Vehicles operated by businesses must have commercial auto insurance.

    In addition, some enterprises may be required by state regulations to seek insurance as part of the licensing procedure. For instance, obtaining a liquor license often requires establishments to have liquor liability insurance.

    3. Does a business owner's policy cover social media risks?

    Your BOP's general liability section includes coverage for advertising injury. It offers a defense against litigation for copyright or brand infringement, as well as libel, defamation, and invasion of privacy claims. This means you are protected if you are sued for posting a critical comment about a rival using your business’ social media accounts.

    Requesting quotes is the best way to determine how much your business owner's policy will cost. It can be customized to suit your needs. Read through Assured Standard's blogs to know more about business policy insurance or general liability insurance for your business today.

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    Assured Standard will protect your business with the right insurance, depending on your needs. Now more than ever, it’s crucial to have the right general liability insurance experts on your side. Protecting the future of your business starts today.
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