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Business Owners Policy (BOP): Who Does It Benefit?

Business dealings, by nature, are subject to a lot of risks which translates to additional liability. If you own/operate certain businesses, you can limit your risk/exposure by enlisting a Business Owners Policy (BOP). Learn more about Business Owners Policy and how this small business insurance package can benefit your operations.

What Is a Business Owners Policy (BOP)?

The Business Owners Policy is a broad small business insurance policy that combines Commercial General Liability Insurance, Property Insurance, Crime Insurance, and other coverages that you may choose to include.

BOP coverage offers your business several policies rolled into one to protect the business and owner from various business risks. Getting BOP also allows the business cost savings compared with buying separate insurance policies. Ultimately this means that a BOP can be tailored to meet your business’s needs.

What Can a BOP Cover?

As stated, Business Owner Policies often cover general liability, property liability, and crime insurance. However, you can get a custom BOP to meet specific business needs. These are the common aspects that BOP offers protection:

Property Damage

The BOP offers compensation for any business property damages resulting from unexpected events. Under this plan, you can cover your business premises, furniture and equipment, landscaping, storefront, outdoor signage, and other’s property proximal to your business.

Medical Expenses/Bodily Injury 

BOP General Liability coverage can offer compensation for medical expenses related to a customer being injured within your business premises.

Lost Income

Most BOPs include provisions for business interruption. It pays lost income for up to 12 months of closure for a valid reason under the policy. This income allows the business to make rent and salary payments. It can also cover costs of relocation to new/temporary locations and advertising new locations.

Some Situations Where BOPs Come In Handy

Business owners need many forms of small business insurance, and BOP is the broadest and arguably most important of them. Your business owners policies benefits can come in handy if the following is true about your business:

  • The business has a physical location (whether within or outside your home)
  • The business has assets that can be stolen or damaged, e.g. inventory, immovable assets, movable assets, digital assets (customer data)
  • The business has a high risk of lawsuits e.g. if customers come to your premises, they may get hurt
  • The business has a revenue not exceeding $5,000,000 and less than 100 employees

Not all businesses qualify to get BOP coverage. Common businesses that qualify include consumer services, restaurants, apartment buildings, offices, religious organizations, tech consultants/vendors, wholesale and retail businesses, etc. Working with an insurance agent can help you figure out exactly what you can and can’t qualify for when it comes to a Business Owner’s Policy.

How Does A BOP Help My Business? 

Every business has hundreds or thousands of variables that make normal business operations possible. You do business with/through various parties, and these relationships have the potential for lawsuits. Business Owners Policies benefits can be enjoyed by the following people:

  • The business and employees
  • Parties to contracts with the business
  • Business suppliers

BOP gives business owners peace of mind, knowing that you are covered for any claim brought against the business. The business saves cost by getting broad coverage under one policy compared with acquiring separate policies for the various risks in business operations. Finally, you can create a customized BOP to ensure you pay only for what you need–additional coverage for specific things, for example.

Where Do I Start?

Being a business owner comes with a host of risks and responsibilities, but BOP can free you to focus on your best work. 

Get in touch with Bethany Insurance to see how a business owner’s policy can give you extra support and peace of mind.