How Does My BOP Cover Fire Damage?

Property fires are often scary, devastating occurrences. After one strikes your business, you might worry about how you’ll pick up the pieces. Small business owners who carry a business owners policy (a BOP) often have a convenient way to do so.

BOPs are unique insurance assets that provide numerous types of coverage. Each of these come in handy when fires occur in the business. Let’s take a closer look at the benefits of BOPs, and how they can help you with many of the losses resulting from fires.

• The Fire Damages Your Property

BOPs provide overage for most fires because they are often unpreventable, unavoidable hazards. Should a fire damage your business’s property, you’ll be able to afford to rebuild with the help of the BOP.

If you own the building that you operate from, your BOP can cover structural damage. The possessions in the business will have coverage under the BOP’s contents coverage, too. The coverage can extend to stock, computer equipment, furnishings and even personal items stored at the business.

Keep in mind, the BOP will often include limits and deductibles for most property damage claims. So, if you have high-value items you want to insure, you might need to add special endorsements to your policy.

• The Fire Forces the Business to Close

Following a fire on the premises, you might have to temporarily halt operations because you have to make repairs. During this time, you might face a significant downturn in business and a drop in income.

To help you avoid the ramifications of these losses, your BOP will often include business interruption coverage. It will help you pay for many of the ongoing costs that don’t go away just because the work stops. It might supplement overhead costs, employee salaries, benefits packages and other bills so that you don’t fall behind on payment. Some policies even pay the business to relocate for the duration of their recovery.

• The Fire is Your Fault

Sometimes, a fire in the business is the business owner’s fault. However, it might cause damage for not only the business, but also for other people. Because the fire was your fault, you might be responsible for repaying others harmed as a result of the fire. Your BOP’s liability insurance is the coverage that will help you do so.

Suppose that you own a restaurant, but not the building from which you operate. You lease that space from a commercial landlord. Perhaps one day, a kitchen fire erupts and damages the location. Your liability coverage can help you repay the landlord for the structural damage.

If you are curious about how your BOP will benefit you in case of commercial fires, ask your agent to review your coverage. They can help you determine if your present BOP limits are adequate protection, or if you need to buy additional coverage.