Commercial Office — Beyond the Traditional BOP 

Is a BOP Still the Best Option for Your Office?

For years, many small and mid-sized commercial offices have been insured through a Business Owners Policy (BOP) or a traditional commercial package policy that combines property and liability coverage into one program.

For many businesses, that can still be an appropriate solution.

But it isn't necessarily the only solution.

Separate Property & Liability Programs Can Create New Opportunities

We're increasingly seeing opportunities to separate the property and liability portions of an insurance program rather than automatically placing both with the same carrier.

Why?

Because the best property market for your building isn't necessarily the best liability market for your business.

By separating the two, we may be able to approach different insurance markets that specialize in each exposure and build a program around the individual risks.

That can potentially provide:

• Broader property coverage

• More favorable property terms

• Higher or more appropriate limits

• Better protection for specific exposures

• Access to specialized liability markets

• More flexibility in deductibles

• Improved policy wording

• And, in some cases, a lower overall insurance premium

Don't Assume Bundling Means Better

A packaged policy can be convenient, but convenience doesn't necessarily mean it's the most competitive or comprehensive solution.

We believe your insurance program should be evaluated based on coverage, exclusions, limits, risk, and total cost—not simply whether everything can be put into one policy.

That's why we look at the individual components of your program.

Property is one risk. Liability is another. Why assume the same carrier is the best choice for both?

A Different Approach to Commercial Office Insurance

When reviewing an existing BOP or commercial package, we can evaluate whether separating the program makes sense.

We'll look at factors such as:

• Building construction and occupancy

• Property values

• Location and catastrophe exposure

• Business personal property

• Business income requirements

• General liability exposures

• Professional services

• Employee exposures

• Current exclusions

• Deductibles

• Coverage limits

• Loss history

• Current premium

• Available insurance markets

From there, we can determine whether a traditional package remains the right solution—or whether a separate property and liability structure may provide a better alternative.

Better Coverage Doesn't Have to Mean Higher Premiums

One of the biggest misconceptions in commercial insurance is that broader coverage automatically means a higher premium.

Sometimes it does. But sometimes a different market, policy structure, deductible, or underwriting approach can produce better coverage at a competitive—or even lower—overall premium.

We've helped identify opportunities where moving away from a traditional BOP or package structure created a more attractive combination of coverage and cost.

Let Us Look Beyond the BOP

If you've had the same BOP or commercial package for years, it may be worth taking another look. Especially, if you have a larger portfolio and looking to utilize your economies of scale. 

The insurance marketplace changes. New carriers enter markets. Underwriting appetites change. Property and liability markets evolve. Your current program may be good—but that doesn't mean it's still the best program available to you.

Mike Smith Insurance can review your existing coverage and determine whether there is an opportunity to restructure your insurance program.

Common Commercial Office Insurance Risks

Premises Liability: Employees, clients, vendors, contractors, and visitors may enter your office every day.

Common premises exposures include:

• Slips and falls

• Injuries in common areas

• Stairway and elevator accidents

• Parking lot and sidewalk incidents

• Falling objects

• Property damage to third parties

• Accidents involving visitors or contractors

General liability coverage can provide protection against certain covered claims involving bodily injury and property damage.

But the policy wording matters. We review the coverage and exclusions to help identify where your liability protection may be limited.

Property Damage

Your office represents a significant investment in your building, improvements, furniture, equipment, technology, and business property.

Potential property losses can result from:

• Fire

• Wind and storms

• Water damage - see more below

• Theft

• Vandalism

• Electrical events

• Other covered causes of loss

A comprehensive property program should take into account not only the building itself, but also the property and improvements necessary to keep your business operating.

Business Income & Extra Expense

What happens if your office can't operate following a covered property loss?

Even when a building is being repaired, your expenses may continue.

Payroll, rent, utilities, loan payments, and other operating costs don't necessarily stop because your business has been forced to close or relocate.

Business income and extra expense coverage can help address certain financial losses resulting from a covered interruption.

We help clients evaluate whether their limits and assumptions accurately reflect the financial needs of their business.

Water Damage

Water losses can be particularly disruptive to office operations.

Potential causes include:

• Burst pipes

• Plumbing failures

• Roof leaks

• Sprinkler leaks

• HVAC issues

• Frozen pipes

• Sewer or drain backups

Water can damage flooring, walls, furniture, electronics, records, and computer equipment—and may make portions of an office unusable.

Understanding the policy's water-related coverage, deductibles, exclusions, and limitations is important.

Cyber Liability & Technology Risk

Today's office relies heavily on technology.

Even a small business may maintain customer information, employee records, financial information, payment information, passwords, and other sensitive data.

Cyber exposures can include:

• Data breaches

• Ransomware

• Phishing

• Business email compromise

• Cyber extortion

• System outages

• Loss of electronic data

• Privacy-related claims

Cyber insurance can provide coverage for certain first-party and third-party losses associated with covered cyber events.

Cyber protection should be evaluated separately rather than assuming a traditional property or liability policy will address every technology-related loss.

Employment Practices Liability

Employees create another category of liability exposure.

Businesses may face allegations involving:

• Wrongful termination

• Discrimination

• Harassment

• Retaliation

• Failure to promote

• Employment-related disputes

Employment Practices Liability Insurance, commonly referred to as EPLI, can provide protection for certain employment-related claims.

For businesses with employees, this is an exposure worth discussing—not assuming it is covered elsewhere.

Professional Liability

Some offices provide professional advice, consulting, design, accounting, legal, financial, technology, or other specialized services.

General liability insurance generally isn't intended to replace professional liability coverage.

If your business provides professional services, an error, omission, or alleged failure to perform can create a very different type of claim.

Professional liability coverage may be an important component of the overall insurance program depending on your operations.

Crime & Employee Dishonesty

Businesses can also face losses that don't involve a traditional property or liability claim.

Examples include:

• Employee theft

• Forgery

• Fraud

• Computer fraud

• Funds transfer fraud

• Theft of money or securities

Crime coverage can help address certain losses resulting from covered criminal activity.

Umbrella & Excess Liability

A serious liability claim can exceed the limits of your primary general liability policy.

An umbrella or excess liability policy can provide additional limits above certain underlying policies, subject to its own terms and conditions.

The appropriate limits depend on your business, assets, operations, contracts, and overall exposure.