What is a Business Owners Policy?
A business owner’s policy must include the following six items: Building coverage, which is the value of the building or equipment that is destroyed; Personal Property coverage, which is the insurance on the business’s property; Extra Expense coverage, which is the insurance equal to the amount needed to keep the business afloat in the event of a short-term shutdown; Liability coverage, which is the insurance to cover legal fees or damages that a business may face upon legal action; Medical Expenses coverage, which will cover a non-employee/non-owner that is injured on business premises; Supplemental Liability, which is a backup for the other liability coverage. All of these items must be covered in a business owner’s policy, unless specifically excluded by the insurance company.
Provided by: Mometrix Test Preparation
Last updated: 02/26/2018
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