Business insurance protects your company from liability and other risks, and it is a valuable asset. When purchasing insurance for your company, consider a Business Owners Policy (BOP).
In general, most businesses should purchase insurance to cover liability and property. While you can buy separate policies for each exposure, a BOP bundles common coverages into one package.
Does Your Business Need a BOP?
- Has a physical location that you own, lease, or rent.
- Could be sued by a customer, employee, or another party.
- Possesses assets that could be damaged or stolen, such as equipment, inventory, cash, or customer data.
Additionally, you may wish to purchase a BOP for peace of mind. It includes core coverages so you can focus on running your business rather than managing multiple insurance policies.
What Insurance Coverage Does a BOP Include?
Most BOP policies combine general liability and commercial property coverages, and many allow add-ons for industry-specific needs.
- Fire
- Theft
- Property damage
- Bodily injury
- Loss of income
- Lawsuits
- Advertising injury
- Slander or libel
Your agent can help you customize a BOP with endorsements such as cyber liability, professional liability, or off-premises utility services coverage if those exposures apply to your business.
Where do you Buy a BOP?
A BOP-Commercial (Business Owner's Policy) is a commercial insurance policy, so contact your business insurance company to inquire about purchasing one. Your agent will analyze your company’s needs and recommend coverage that fits your business and budget.
If you prefer a direct next step, you can talk to an agent to review options and get a quote.
How Much Does a BOP Cost?
Generally, a BOP can be more cost-effective than buying separate liability and property policies because it bundles common coverages.
Premiums depend on the coverages you select, policy limits, your location, claims history, and other underwriting factors. Consider the potential cost to your business if you lack coverage: a single lawsuit or major loss could be financially damaging without insurance.
Protect your company with a BOP; it bundles important coverage that can save you thousands of dollars in the event of a loss.
Frequently Asked Questions
What types of businesses typically qualify for a BOP?
Small to medium-sized businesses with a physical location and predictable liability and property exposures commonly qualify for a BOP.
Will a BOP cover professional mistakes?
Standard BOPs usually do not include professional liability; you may need a separate professional liability policy or an endorsement for those risks.
Can I add cyber coverage to a BOP?
Many insurers offer cyber liability endorsements that can be added to a BOP to cover data breaches and related expenses.
How often should I review my BOP with an agent?
Review your policy at least once a year or when your business changes, such as adding locations, equipment, or new services.