Do you travel to customer locations, instead of having a shop where customers come to you? BOP insurance can give you most of the coverage you need. But you may still need to look at other types of insurance.
What Are the Risks When You Travel To A Customer Location?
When you travel to a customer's home or place of business, you take on several risks.
- Damage to your customer's property or a neighbor's property while you're working or moving equipment. This might include accidentally breaking a window, scratching a car, poking a hole in a wall, or knocking over a computer.
- Injuring a customer or passerby by dropping a tool off a roof, placing a hose where someone might trip, or striking them with debris.
- Having your tools or equipment stolen while you're working. For example, you may be unable to fully secure your job site, or someone may break into your truck while you're inside working.
Would Your Customer's Insurance Cover You?
If you injure someone or cause property damage, your customer may have health insurance, homeowners insurance, or their own business insurance policy that covers them. However, the key words are covers them. Your customer may not have any out-of-pocket expenses, but their insurance company may seek reimbursement from you.
When you have insurance, the process of one insurance company seeking reimbursement from the at-fault party's insurance company is called subrogation. Your insurance company may ask you to provide information about what happened, but you won't have to worry about covered claims. If you don't have insurance, or your insurance limits aren't high enough to pay the claim, you could face a lawsuit from either your customer or their insurance company.
What Doesn't BOP Insurance Cover?
BOP insurance is really a package of different types of insurance coverage that will cover most claims. But it isn't all-inclusive. The most important exclusion for traveling businesses to be aware of is commercial auto coverage. Anything that happens while you're driving would typically need a separate auto insurance policy to be covered.
Since BOP insurance is a package deal, what is and isn't covered will really depend on the options you choose. Review your specific policy to see what coverages you have. And think about the types of risk your business faces to determine if you need additional coverage.