Business Insurance; Business Owner Policy – (BOP)

What is a business owners policy?

A business owners policy or BOP for short is a combination of commercial property insurance, general liability insurance and business interruption insurance wrapped into one very convenient business insurance policy. The great thing about a BOP is it’s usually sold at a premium that is lower than if you bought all of these forms of coverage individually. In addition, it’s one of the more popular business insurance coverages for small business. 

Understanding Business Owner Policies

A business owners policy is targeted towards small to medium sized businesses. Most business insurance companies do require businesses to qualify for these policies. 

The commercial property portion of a BOP is typically available as named peril coverage. Meaning it provides coverage only if damage is caused by certain events listed in your policy, such as fire, wind, explosion, vandalism, smoke and other perils. There are some business owner policies that offer open peril or all risk coverage. If this is an option, usually it is a special form of a BOP and not standard coverage.

The properties covered under a BOP typically will include building either owned or rented, additions and outdoor fixtures. Your business owners policy will also cover you for items owned by the business, items owned by a third party held by your business, custody or control by the business. Business property must be stored in a qualifying proximity of the business premises. 

The business interruption portion of your BOP will cover loss of income that may result from a fire or other catastrophic event that disrupts business operation. It may also include the extra expense of operating out of a temporary location. 

With the general liability insurance under your BOP you will have insurance that covers the companies legal responsibility for damages it may cause to others. This damage would have to be caused from normal course of business operations, which may cause bodily injury or property damage. It can also include faulty installations and errors in service. 

What to consider with a business owners policy 

Your business owners policy can include crime insurance, vehicle coverage, and flood insurance. It all depends on your companies individual situation. Although, you may have to make certain circumstances for additional coverage. Your BOP does not typically cover professional liability, workers compensation insurance, health, or disability insurance coverage. All of these insurances would require you to get additional policies.

Requirements for a Business Owner Policy (BOP)

Not all businesses will qualify for a BOP. The eligibilities will differ among each business insurance provider. There are circumstances such as location, revenue, and the class of your business that may come into play. 

Most of the business insurance companies will only cover companies that handle all business on their premises. There are also limitations if the primary business property measures over or under a specified area. Usually company classes that are eligible for a BOP include retail stores, apartments, restaurants, and offices. 

Business owners policy insurance quote

A BOP is a great way to get different coverages all at once. Although, adding other polls can help. At Eugene C Yates Insurance Agency we provide custom business insurance quotes so your needs are met as a small business owner.

To get a free business insurance quote, please give us a call today at 916 313 6100