Business Owners Policy

A Business Owner’s Policy (BOP) combines business property and business liability insurance into one business insurance policy. BOP insurance covers claims resulting from things like fire, theft, or other disasters.

Business owner’s insurance also covers claims that could arise from your business’s operation. These include claims of bodily injury or property damage. They also include claims related to personal and advertising injury.

A BOP combines these 3 types of policies into 1 policy:

  • General Liability Insurance
  • Business Income Insurance
  • Commercial Property Insurance

What Types of Coverages Are Available?

General Liability Insurance

This coverage helps if the business is sued for causing harm to a person and/or damage to property. It also helps cover the cost of a legal defense. It does this because businesses can be sued even when it’s not clear that they were in the wrong.

Business Income Insurance

This coverage helps replace lost income if an unexpected event causes a suspension in business operations due to a covered loss. This insurance acts as business interruption insurance. It includes important monthly benefits to employees, such as payroll and any other financial payments that are due to them. This also includes essential payments, like rent.

Additional Insured – third party that has liability exposure in a business relationship. Property owners, landlords, general contractors, and vendors are examples of entities that could request to be named as AI.

Loss Payee – the party or entity that would get paid first in the event of a loss connected with a property in which it has a financial interest. A lender, buyer, a lessor, or a property owner.

Commercial Property Insurance

This coverage helps protect business property that you own, lease or rent, including your:
  • Buildings
  • Equipment
  • Inventory
  • Furniture
  • Fixtures
In addition to these, commercial property insurance also helps cover losses of accounts receivable and valuable papers or records.

Who Needs a Business Owners Policy

A BOP can help if:
  • There is a physical location: No matter the type of location, it’s important to have coverage for the business and its assets. BOPs can help cover businesses run out of homes, rented or owned offices, stores or garages.
  • There’s a possibility of being sued: For example, let’s say a customer at the physical location slips and falls. Without proper business owner’s insurance, hefty out-of-pocket fees may be needed to cover the customer’s medical expenses.
  • There are assets that could get stolen or damaged: From digital assets and customer data to equipment, furniture, cash or inventory, some assets can be very hard to replace. With BOP Insurance, coverage can protect your assets if they get stolen or damaged.

How Much Does a Business Owners Policy Cost?

These different factors can impact the cost of a business owners policy:

  • Type and specialty of your business
  • Years of experience
  • Location, size, building condition
  • Policy limits and deductibles
  • Claims history