What is a Business Owner's Policy?
Business insurance protects your company from liability and other risks, and it's a valuable asset. When purchasing insurance for your company, consider a Business Owner's Policy (BOP).
Does Your Business Need a BOP?
In general, most businesses should purchase insurance to cover liability and the property. While you could purchase each of these individual policies to protect your company, a Business Owner’s Policy bundles all your coverage.
A BOP is probably right for your company if your business:
-
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 to gain peace of mind. It includes the coverage you need, freeing you to focus more on your customers and think less about your insurance.
What Insurance Coverage Does a BOP Include?
Most BOP policies combine your general liability and commercial property insurance policies. General liability insurance is used to cover property damage, lawsuits or your defense, if necessary. Commercial property insurance protects the property, equipment, furniture, and inventory your business owns, leases or rents in addition to valuable records or accounts receivable.
In general, use your BOP to cover:
-
Fire.
-
Theft.
-
Property damage.
-
Bodily injury.
-
Loss of income.
-
Lawsuits.
-
Advertising injury.
-
Slander or libel.
You may also customize your BOP based on your needs. For example, add cyber liability insurance, professional liability or off-premises utility services coverage to your BOP as you further protect your company.
Where do you Buy a BOP?
A BOP is a commercial insurance policy, so contact your business insurance company to inquire about purchasing a BOP. Your agent will analyze your company’s needs and recommend coverage that fits your business. Your agent will also perform a review at least annually to ensure your BOP continues to meet your needs.
How Much Does a BOP Cost?
Generally, a BOP can save you money. It’s often cheaper to buy a BOP than purchasing individual policies.
Likewise, the cost of commercial insurance depends on the coverage you buy and policy limits. Your insurance agent will help you customize a policy to meet your needs and budget.
When considering insurance costs, you should also consider the costs to your business if you don’t have insurance. A single libel charge, slip and fall, or other mistake or accident could bankrupt your company if you don’t have insurance and must instead pay out-of-pocket, so verify that you have adequate coverage.
Protect your company with a Business Owner’s Policy. It bundles important coverage that can save you thousands of dollars.