Ins and Outs of the Business Owner’s Policy

If you own a business, you may be familiar with the term Business Owner’s Policy, otherwise known as a BOP. This policy combines business property and business liability insurance into one business insurance policy. The intention of a BOP is to help cover your business from claims resulting from things like fire, theft, or any other covered disasters. Additionally, this policy can cover claims that could arise from your business’s operation. Claims such as bodily injury, personal injury, advertising injury, or general property damage.


Requirements to Qualify for a BOP


Not all businesses are eligible for a business owner’s policy. Of course, as with most things, different insurance providers will have a varying set of requirements the business owner must pass in order to achieve eligibility. These requirements can range from the business location, the size of the location, revenue, and class of business. Did you know that most insurance providers only cover businesses that handle all business on-premises? 


Who Needs a Business Owner’s Policy?


These are the business types that are typically eligible for BOPs: retail stores, apartment buildings, small restaurants, and office-based businesses. If you fit into any of these three options, you should look into getting a Business Owner’s Policy:


  • Your business has a physical location.
  • There’s a possibility of you getting sued. 
  • You have assets that could get stolen or damaged. 


What is Included in a BOP?


Business owner’s insurance usually includes:


  • Commercial Property Insurance 
  • General Liability Insurance
  • Business Income Insurance


What Else Do You Need?


It’s important to remember that business owner’s packages do not cover professional liability, auto insurance, worker’s compensation, or health and disability insurance. Once you’ve begun looking into insurance you will need to purchase separate insurance policies to cover professional services, vehicles, and your employees.


Interested in adding a business owner’s policy to your coverages? Reach out to your local agent to learn more.