Business Owner's Insurance Policy (BOP)

A business owners policy, or BOP, covers liability, business personal property and property damages for businesses. If you own a store, apartment building, business office, or a similar type of business entity, you should obtain this type of insurance. It will protect you from having to pay out of pocket for everything from property damages to loss of business contents.

Property Insurance

This component covers damage or loss to your business's physical assets, such as buildings, equipment, inventory, and furniture. It protects against risks like fire, theft, vandalism, and certain natural disasters. Both the structure of the building (if owned) and the contents within it are covered.

General Liability Insurance

Liability coverage is essential for protecting your business against claims arising from injuries or property damage that occur on your premises or due to your business operations. This includes coverage for legal fees, settlements, and medical costs if someone is injured on your property or if your products cause harm.

Business Interruption Insurance

If your business is forced to close temporarily due to a covered event, such as a fire or natural disaster, this coverage helps replace lost income. It can also cover ongoing expenses like payroll, rent, and utilities during the period of closure, ensuring that your business can survive financially during downtime. In some cases, this coverage may extend for up to a year.

Equipment Breakdown Insurance

This protects against the sudden and accidental breakdown of machinery and equipment essential to your business operations. It covers the cost of repairs or replacement, as well as any lost income due to the breakdown.

Inland Marine Insurance

Often included in a BOP, this coverage protects business property that is in transit or stored at a location other than your primary business address. This is especially important for businesses that regularly transport goods or equipment.

Crime Insurance

This component safeguards your business against losses resulting from criminal acts such as theft, burglary, robbery, and employee dishonesty. It can cover the loss of cash, securities, and other valuable assets.

Employee Dishonesty Coverage

Specifically designed to protect against losses caused by fraudulent acts committed by your employees, such as embezzlement or theft, this coverage is essential for maintaining financial security within your business.

Additional Customizable Coverages

Depending on the needs of your business, a BOP can often be tailored with additional coverages. These might include protection against data breaches, forgery, counterfeit money, and more. This flexibility allows you to build a policy that aligns closely with the specific risks your business faces.

Business Owner's Insurance Policy FAQ

We’re big believers in keeping things simple, so ask us anything and we’ll answer honestly and without the jargon.

What is not covered by a BOP?

BOPs generally do not cover professional liability, auto insurance, workers' compensation, health insurance, or coverage for high-risk activities. These coverages may need to be purchased separately.

Can I customize a BOP to fit my business needs?

Yes, a BOP can be tailored with additional coverages and endorsements to suit the specific needs of your business. You can choose from a variety of optional coverages based on the risks your business faces.

How much does a Business Owner's Policy cost?

The cost of a BOP depends on factors such as the size of your business, industry, location, coverage limits, and the specific coverages you choose. It is generally more affordable than purchasing individual coverages separately.

Do I need additional insurance policies beyond a BOP?

Depending on your business, you may need additional coverages not included in a BOP, such as professional liability insurance, cyber liability insurance, or workers' compensation. A BOP serves as a foundation, and other policies can be added as needed.

Who is eligible for a Business Owner's Policy?

BOPs are typically designed for small to medium-sized businesses with a physical location, fewer than 100 employees, and revenues below a certain threshold. However, eligibility can vary by insurer and industry.

Can a home-based business qualify for a BOP?

Yes, many home-based businesses are eligible for a BOP. While homeowners insurance provides some coverage, it may not be sufficient to cover business-related risks. A BOP offers more comprehensive protection tailored to business operations.