What is a Business Owners Policy?

A business owners policy, otherwise known as BOP, is a particularly popular type of business insurance for small as well as medium-sized businesses. A business owner’s policy combines coverage from a number of individual insurance policies into one simplified package policy. Small businesses are thrilled with the simplified policy, while insurance companies love the efficiency of the BOP. Because a BOP combines both property and liability coverage rolled into one, insurance companies can sometimes offer lower premiums. It’s a win-win situation for both the small business owner and the insurance company.

BOP covers a number of different types of losses including equipment, buildings and legal liabilities. The business owner’s policy covers the small business owner for losses to their property (business property coverage) and personal injury. It also covers property damage or injury that occurs if someone is using your products. Fire legal liability is another important coverage component of a BOP, which will pay for property damage to leased property. Lawsuits alleging slander, invasion of privacy or libel can be quite costly for a small business, but a BOP insurance policy provides peace of mind. If, as a small business owner, you get sued for incidents such as a fall on your premises, the business owner’s policy protects your business against the suit. Although most equipment is built to handle everyday operation roughness and toughness, equipment and machines still break down. A business owner’s policy can protect you against income loss due to an equipment breakdown.

A BOP protects the small business owner in other ways as well. Suppose your small business is hosting a special event or party in which alcohol will be served. A business owner’s policy covers you for intoxicated people at your party that cause property damage or injury.
Whether you own the building in which you operate or rent it, a business owner’s policy protects not only your business assets, but your personal assets. Another advantage of a business owners policy, is that it provides more complete coverage at a lower price than you would pay if your were to purchase individual insurance policies. Lastly, many business owners policies offer customizable coverage options, so you’ll be sure to find the perfect, one-stop-shop business insurance policy for your small business.