Business Owners Policy

Business owners have many insurance policies to choose from to protect them from the unexpected. A business owners policy (BOP) is one type of policy worth considering.

What Is a Business Owners Policy?

A business owners policy combines business property, general liability and business interruption insurance into one policy. A BOP can be customized to fit the specific needs of a business.

A BOP typically includes the following three types of insurance:

1. General liability insurance can help cover a company’s legal liability after accidental third-party property damage or bodily injury.

2. Business property insurance may help cover replacing or repairing company property after a covered incident.

3. Business interruption insurance can help cover regular bills if a company must temporarily close to allow for repairs after a covered event.

Other coverages, such as workers’ compensation insurance, professional liability insurance, coverage for company vehicles, flood and earthquake insurance, cyber liability insurance and employment practices liability insurance, may be available as separate policies or endorsements to a BOP.

The Benefits of BOP Insurance

A BOP is beneficial because it offers a way to save on broad coverage for incidents such as fire, theft, lawsuits and loss of income. A BOP is also typically a more affordable way for businesses to maintain coverage.

BOP vs. Business Insurance

A BOP is a simplified version of a business insurance policy. A BOP also typically has lower premiums than if you invest in many individual business-related policies. A BOP is designed for small- and medium-sized businesses in relatively low-risk industries. In contrast, a business insurance package is more suitable for larger companies with higher risk.