A business owners policy, or BOP, is designed to help small businesses create a custom tailored package of insurance that meets their business needs. It helps ensure that your company is fully covered for the areas it needs to be, without having to carry additional unnecessary coverage that costs extra.
Businesses that qualify for a BOP insurance policy can vary from one state to another. Generally however, small companies that have less than 100 employees and who generate less than $5 million in annual sales can qualify for this coverage.
Examples of small businesses that can benefit from a business owners policy include:
- Pet Groomers
- Florists
- Automotive Repair Shops
- Veterinarians
- Independent Doctors and Dentists
- Coffee shops and local restaurants
- Caterers
- Small retail stores
A business owners insurance policy provides your company with a number of different types of coverage options. These coverages include but are not limited to general liability, property and asset protection, equipment malfunction, income loss and product or service liability.
General liability insurance protects your company from claims that arise due to unexpected events and accidents. This insurance takes care of the medical bills if a customer injures themselves inside your retail store or offices for example. It also protects you from liability and litigation that might arise if the retail or business space that you rent become damaged from something that you or an employee did. If you rent space for your dry cleaning establishment for example, and a malfunctioning steam machine shorts out and starts a fire, general liability will pay for the cost of the building repairs.
Property protection is another area that a BOP can help protect your company from losses. If you own the building your company operations are housed in and that building is damaged in a wind storm for example, the BOP can pay for repairing your building. It also pays for damages caused to other physical assets such as the furnishings inside of your establishment, or items outside such as patio furniture at a coffee shop.
When disasters do strike, they can shut down your business operations temporarily. A BOP can help pay for lost wages during that time, and pay for temporary relocation expenses if needed.
As a small business owner, you invest heavily into making sure your company has the appropriate equipment for the services you provide. If equipment breaks down, it can cost your company both in repair bills and potentially in lost business. A BOP insurance can help pay for the cost when machines break down, so that your company does not have to.
Sometimes when you sell products or provide services, problems arise in the future. When the problems are severe enough, your customers may sue your company. A BOP protects you with product liability coverage as well as coverage for completed operations.
If you own a small and growing business, contact one of our licensed representatives to talk about the way we can help tailor a BOP policy to your specific needs.
