What Property Is Covered in a BOP?
A handyman business can be a challenging one to insure. Most companies go from one location to another to provide service. That means your business insurance needs to provide enough protection for working onsite. A business owner’s policy or BOP can do this for you. It usually works well for a smaller company that needs flexible insurance protection. Here is how it works for many contractors.
It Protects Your Property
Property insurance is at the heart of the BOP. This means it can protect the structure you run your business out of, such as a leased office space. It can also cover the equipment you own such as your construction tools. It covers your office furniture, your computer system, and any other assets owned. You can customize it to go further, too. For example, you can add on the storage space that you use for your equipment.
It Protects Your Liability Risks
Business insurance for handyman companies has to include comprehensive general liability insurance. In this industry, mistakes can happen. Even if they do not, a customer could suffer an injury due to a piece of equipment laying around.
BOPs offer liability insurance to cover this. It covers any type of loss another person suffers as the result of your normal course of business. This usually includes property damage you might cause while working on clients’ property.
What Else to Consider
You can add on to your business insurance policy to meet other goals your company has. As a handyman service, you may need additional insurance like the following.
- Commercial Auto Insurance – This becomes a type of insurance most companies need in this industry. If you operate vehicles as a part of your business, you need commercial auto insurance. It will help to protect its value and liability.
- Workers’ Compensation Insurance – Do you have employees? In a handyman business, there is a risk they will suffer an injury. Workers’ compensation insurance may help pay for those losses.
Additional coverage options to consider include crime protection, mechanical breakdown insurance for your equipment, and business interruption insurance. You may also need to consider a surety bond, a type of insurance required to begin work on some projects. This is not a part of BOP, but you can buy a policy separately for it.
The right type of business insurance protects all your risks. For the handyman business owner, a business owner’s policy is a good start. Then, enhance it by adding coverage to minimize the risks to you and your company.