A rogue employee embezzles $50,000 from your company's bank account. A visitor to your office slips and falls on a wet floor, suffering a broken elbow. A competitor sues you for allegedly libeling their product.
Believe it or not, a single insurance policy could pick up the tab for any of these instances.
The Business Owner’s Policy (BOP) can provide "package" protection against these risks — and a wide variety of others — for a premium that's typically lower than buying separate Property and Liability policies to cover each peril.
As a rule, BOP packages are available to Main Street businesses (those with revenues of $5 million or less and 100 or fewer employees). Learn more about service-sector options at BOP Insurance Program for Service Sector Businesses.
Property coverage under a typical BOP includes:
- Property damage to your premises, contents, inventory, office equipment, and computers, as well as the property of others temporarily in your care — such as clothing being cleaned. Many BOPs will pay the cost to replace lost or damaged property rather than its actual cash value.
- Business interruption, which covers loss of income caused by lost or damaged property.
BOP Liability coverage includes, but is not limited to:
- Bodily injury: losses due to physical or mental injury, disease, and death that occurs on your premises or is caused by your products.
- Medical payments: covers the cost of immediate health-care treatment for customers, vendors, or suppliers injured on your property.
- Personal and advertising liability: protects your business against lawsuits alleging slander, libel, or invasion of privacy.
- Crime: covers loss of money or securities from burglary, theft, and embezzlement.
Bear in mind that because the amounts of insurance (limits) under your BOP are fixed, you might need to increase limits or add coverages such as Fleet Auto. We'd be happy to help provide you with a Small Business Owners Insurance policy that's tailored to the needs — and pocketbook — of your business.
Please feel free to ask an agent.
Frequently Asked Questions
What does a Business Owners Policy (BOP) cover?
A BOP typically combines property and liability coverage for small businesses, including property damage, business interruption, and common liability protections.
Which businesses are eligible for a BOP?
BOPs are generally designed for Main Street businesses with modest revenues and employee counts; eligibility and size limits vary by insurer.
Does a BOP cover employee theft or embezzlement?
Some BOPs include crime coverage that can cover employee theft or embezzlement, but limits and specific coverages vary by policy.
What should I do if my business needs higher limits or special coverage?
You can often increase limits with endorsements or add separate policies such as umbrella coverage; discuss options with an agent to match your risks.