What is a BOP and Where Can I Get One?

A BOP is a business owners policy. It is a comprehensive insurance package that combines coverage for major property and liability insurance into one policy designed for small- to medium-sized businesses. A BOP is beneficial because it provides comprehensive coverage with the simplicity of a packaged policy.

BOPs include property and liability coverage as well as business income insurance, including:

  • Coverage for buildings and their contents, including inventory, office equipment, furniture, computers, equipment leased or rented for business use, and property in your care belonging to someone else. Two different forms of coverage are offered: standard and special. Special policies provide more comprehensive coverage.
  • Coverage for business interruption compensates you for lost income and operating expenses if you are unable to operate following a disaster.
  • Coverage for business liability provides insurance for damage that you are legally obligated to pay due to harm your business has caused. Liability coverage within a BOP includes bodily injury liability coverage and property damage liability coverage.

Only certain businesses will meet the criteria to purchase a BOP. Larger businesses with more complex risks must purchase commercial property and commercial general liability insurance, as well as other types of business insurance policies. Eligibility for a BOP as well as premiums are based upon the following:

  • The size of the business property
  • The necessary liability limits
  • The type of business
  • The extent of the business’s offsite activity
  • Business location
  • Financial stability
  • Type of building construction
  • Security features
  • Fire hazards

Business owners policies do not cover professional liability, commercial vehicles, workers’ compensation, health care and other employee benefits. Separate policies are available to small business owners who need this type of coverage.

Are you a small business owner? Do you think you would be eligible for a BOP, or do you need more complex coverage?

 

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