Business Owners Policy (BOP) are policies that also combine property and liability coverage in one policy. BOP's are "ready made" right off the shelf policy packages. BOPs are policies that are primarily for small businesses with low risk exposure, such as basic office operations.
Business Owners Policy Coverage
BOPs can be a cost effective solution that protects your small business from common risks such as fire, burglary, and liability. BOPs provide key insurance coverage, including:
Protect your office space and the property your business owns, such as office equipment and inventory with commercial property coverage. Whether you rent or own your office space, commercial property insures you against common risks such as fire, burglary, and vandalism.
Protect your business against claims or lawsuits in the event someone is injured at your business, or by using your product or services with commercial liability coverage. Liability insurance offers coverage for common business risks such as third-party bodily or personal injury, medical bills, property damage, and product liabilities.
Business Owners Policies can be tailored to meet your additional business needs. This ready-made policy offers an affordable solution for low risk business owners, but it doesn’t cover all of the risks you may face as you operate your business. Let us help you determine if a BOP will provide you with the right insurance protection at the right cost, or if your business needs a customized BOP that includes additional defense for your specific business needs.
Do you need a Business Owners policy?
The contractors general liability coverages can often be bundled with a few other coverages to create a business owners policy, or BOP. This serves two purposes. It expands the policy to cover risks that small business owners face, and also typically results in a discount on the cost of your insurance.
Normally, this coverage will make sense for you if you have employees. A small business is basically defined as a business that has up to 100 employees and generates about $5 million or less in annual revenues.
Some of the additional coverages that can typically be bundled with a BOP include:
- Property damage: This insurance covers your owned or rented property if it is damaged. This includes office buildings, storage facilities, warehouses, workshops, or garages. It does not cover commercial vehicles.
- Business income: This protects you from loss of income if your business is interrupted due to a covered loss. It usually covers income and operating expenses for up to 12 months.
- Commercial auto: Insures your cars, trucks, vans, specialized trucks or any vehicles used for business purposes.