What is a Business Owner's Policy in Oregon?
It's a package policy that provides both liability and property coverage for small to medium size business owners. The coverage that most smaller sized businesses require is packaged together in a Business Owners Policy, otherwise known as a BOP Policy.
What are the requirements for a business to be eligible for a BOP policy?
There are specific rules that apply for a business to be eligible for this type of Policy. Because this policy (as mentioned above) is for small to medium sized businesses, there are restrictions along with what is eligible for coverage. Here are some of the types of businesses that are eligible, along with their restrictions:
- Apartment buildings of any size, including residential condominium associations. May also provide coverage for "incidental occupancy" for offices and certain wholesale and retail exposures.
- Office buildings- including office condo associations. The general limitations for this one are: not more than six stories, no more than 100K square feet, and may provide up to 25k square feet of residential occupancy.
- Buildings occupied by retail or wholesale. This is usually afforded to stand-a-lone business in buildings that are not larger than 25k square feet.
Some examples typical eligible wholesale risks are as follows:
- Floor covering distributors
- Grocery distributors
- Hardware and tool distributors
- Janitorial supply distributors
- Plumbing supplies and fixtures distributors
- Wholesale nursery/florist
There are many more, those are just to give you an idea of some that may be eligible, as long as not more than 25% of the wholesaler's floor space is allocated to retail and not more than 25% of gross annual sales may be derived from retail sales.
Some examples of typical eligible retail exposures are as follows:
- Bakery- including baking on premises
- Funeral homes and chapels
- Laundry and dry cleaning facilities
- Printing Services
- Watch, clock, and jewelry repair
- TV Radio service and repair
Also, There are certain fast food and very limited cooking restaurants that may be eligible for a BOP policy.
Limited Cooking Restaurants: Basically, if it doesn't emit smoke or vapors that require an exhaust system, then it's ok. Other eligibility factors include: seating capacity at 75 or less, no more than 75% sq ft of floor area, beer or wine sales that don't exceed 25% of gross annual sales (doesn't include hard alcohol), catering not to exceed 10% of gross annual sales and it excludes seasonal risks- when facilities are closed 30+ days in a row per year.
Fast Food Restaurants: May use appliances that emit grease-laden vapors, grills, enclosed broilers, and deep fryers (have to have proper fire extinguishing equipment). However, may not use open broiling or solid fuel- such as hardwood or charcoal. Also, much like Limited Cooking Restaurants, the floor space cannot exceed 7500 total square feet, but, seating capacity increases.
Some examples of Limited Cooking and Fast Food Restaurants that may be eligible are the following:
- Pizza shops
- Salad bars
- Coffee shops
- Donut shops
- Ice cream shops
Let the experts at Ferranti-Graybeal here in Oregon, review your current coverage to ensure you're not at risk! We will be happy to help explain anything you have questions about and we can help you put together an Insurance Plan that works best for you!
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