What is Business Owner’s Policy Insurance & Do I Need It?
In our blog, we explore different types of insurance coverage and help clarify what policies may be relevant for you.
What Is Business Owner’s Policy Insurance, or BOP?
Business Owner’s Policy Insurance houses two types of coverage into one policy: business property and business liability insurance. BOP offers corporations a way to save money while safeguarding them with broad coverage -- including claims resulting from your operations (i.e., property damage, lawsuits claiming personal or advertising injury), or theft, fire, or other covered disasters and even loss of income.
This type of policy can be tailored to meet your business’ individual needs. For instance, if you are at risk of a data breach (which, many organizations are these days in the era of employees working remotely), you could add optional coverage to protect against this specifically.
What Does It Include?
This type of coverage usually includes:
Commercial Property Insurance, which protects your business’ property, whether it is owned, rented or leased, and your equipment, furniture, inventory and more.
General Liability Insurance, which protects against the cost of defense and against lawsuits claiming your business caused harm to a person and/or property damage.
Business Income Insurance, which can help you replace lost income resulting from fire or wind damage or theft. This coverage specifically helps a business meet its continuing financial obligations (rent, payroll, etc.).
Who Typically Qualifies for BOP?
Generally speaking, if you have a small- to medium-sized business with a relatively small physical footprint, your business would qualify for a BOP.
What are the Advantages of this Coverage?
Obtaining BOP coverage helps streamline your coverage needs because it includes business property insurance and business liability insurance in one policy. Combining these coverages is generally more affordable than purchasing them separately, plus, with BOP, you can add other coverages to your policy to suit your company’s unique needs.
Do I Need a Business Owner’s Policy?
You should consider this type of coverage if the following apply to you:
You can possibly be sued.
Your business has a physical location – whether that’s a rented space or a business run out of your basement.
You have assets – whether digital or physical – that can be stolen or damaged.
As always, we encourage you to consult with us before making any decisions on coverage, so we can make an expertly customized recommendation based on your needs.
