Business Owners Policy (BOP)
Filing property and liability claims on your BOP
Your BOP covers different types of losses—property damage, business interruption, and liability claims. Each follows a similar process but has unique considerations.
BOP claims fall into two categories: first-party claims (property damage, business interruption) where you recover for your own losses, and third-party claims (liability) where others seek recovery from you.
Step-by-Step Claims Process
Secure and document the loss
For property claims, take reasonable steps to prevent further damage (board up windows, tarp roofs). Document all damage with photos and video before cleanup begins.
Tip: Save damaged property for adjuster inspection. Don't discard items until approved.
Report the claim promptly
Contact your insurer to report the loss. For property claims, the adjuster needs to inspect before major repairs. For liability claims, early reporting preserves your defense.
Tip: Emergency repairs to prevent further damage are covered—keep all receipts.
Prepare your documentation
Gather proof of loss: inventory lists, equipment receipts, financial records. For business interruption, you'll need profit/loss statements and payroll records.
Tip: Your accountant can help document lost income for business interruption claims.
Work with the adjuster
The adjuster will inspect damage, review documentation, and determine covered losses. You may need to get repair estimates from contractors.
Tip: Keep records of all temporary expenses—additional rent, equipment rental, overtime.
Settlement and payment
Once the adjuster determines covered losses, you'll receive payment less your deductible. For business interruption, payments may be ongoing until you resume operations.
Tip: Review settlement offers carefully. You can negotiate if you disagree with valuations.
Tips for a Smooth Claims Process
- Maintain an up-to-date inventory of equipment and property for faster claims
- Keep copies of financial records off-site or in cloud storage for business interruption claims
- Document any increase in expenses needed to maintain operations after a loss
- Consider a public adjuster for large or complex property claims
- Business interruption coverage usually has a waiting period (24-72 hours)—know your policy
Need help with your business owners policy (bop)?
Our licensed agents can help you understand your coverage options and find the right policy for your business.