|There are two types of Missouri business insurance policies. The Business Owners Policy or BOP and the Commercial Package Policy or CPP. These two types of policies are explained below.
The Missouri Business Owners Policy
This policy is intended for main street businesses and combines building, personal property, and liability insurance coverage with other attractive options into one package. The BOP is an efficient way to provide the Missouri commercial insurance coverage that most small businesses need.
Are You Eligible for a BOP?
The two keys to BOP eligibility are type of business and square footage. General examples:
Square footage guidelines can relate to overall building space or a business’s rental space. Generally, the cutoff for BOP eligibility is 25,000 square feet; however, this varies between Missouri business insurance companies. We will determine if a business is eligible for a BOP and if the BOP option is the best value.
Missouri Business Insurance Personal Property Coverage
Business personal property coverage can include:
When you own a building, the same BOP must cover both the building and the business personal property. Otherwise business personal property can be insured alone in a BOP. This is good for businesses that lease or rent space.
Different BOP Forms
The BOP named peril form will:
The Special peril form will:
By nature, the Special form has more coverages built in. The Standard form has approximately a dozen additional coverages. Among these are:
Don’t worry, we’re not ignoring loss of business income and extra expenses from a direct insured loss. Frequently a loss from a fire or other insured peril goes beyond the direct damage caused by the fire. Even minor damage can close your business for a long time. This means your business has no income to maintain salaries and other expenses. Don’t ignore loss of income protection!
* Tip. Business interruption coverage is not a luxury.
Recall that extensions are an opportunity for you to have certain property covered after a loss. Extensions are controlled by:
The ISO BOP’s make provisions for the following:
Coverage is limited in these areas. You may need specific insurance to cover one or more of these extension areas for your business.
Exclusions & Conditions
Exclusions and conditions are common in insurance policies. BOP’s are no exception. You’ll find some exclusions and conditions from policy to policy, regardless of the type of insurance. Conditions are normally procedural matters and loss adjustments. Exclusions are matters the insurance is not designed to cover.
Note. Remember an insurance policy must be read as a unit, not as independent paragraphs or sections.
“One policy does not fits all commercial insurance needs.” Missouri Business insurance needs are all different. Everyone has a different type of property, amount of property, location, ownership, and so on. Your insurance coverage protection should closely reflect your risk of loss. This customized approach allows you to save money– you pay for only the insurance you really need.
The Commercial Package Policy (CPP)
The Missouri commercial Insurance Package Policy can be issued to include almost any type of coverage offered, from property and liability to auto, crime, inland marine and professional liability. When your business risks goes beyond the coverages in a BOP, the flexibility offered by a Packaged Policy provides the opportunity to design a policy specifically for the needs of an organization. It also enables you to have almost all your coverage in one convenient package.
Most policies offer expanded coverage endorsements. These endorsements provide additional coverages or increase your current coverages for lower premiums than purchasing each coverage separately. After assessing your business risks and determining that a package policy is what you need, we will design a custom insurance package policy with specific coverages.
Here are a few main coverages included in most packages:
Commercial property coverages:
Your business personal property doesn’t stay in one place, and neither does your coverage. Most policies cover your business personal property while in transit, at trade shows, or temporarily at locations you don’t own or lease.
After a covered loss, your policy may pay for the extra costs of:
A property loss can slow down or even stop your operation until repairs are made – and that may mean lost income. You receive several business income coverages that can reimburse your loss of income and necessary extra expenses you incur to keep your business operating after a covered loss.
Options to Suit Your Needs
Learn More: Insurance for Different Business Types
On the right sidebar of this page, we have links to a number of business insurance resources. Click on any of the different business types to learn more about the insurance coverages for that type of business. Please call one of our commercial insurance agents at MJM Insurance™ of Fenton for any assistance.
About Adam Majnerich
Adam Majnerich has been an insurance professional for over 16 years and earned the position of General Manager for MJM Insurance™. His professionalism and attention to detail along with his utilization of technology ensures every client receives the most accurate, competitive, efficient and complete risk solutions.