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What Is and Isn’t Covered Under a Business Owner’s Policy

A business owner’s policy, or BOP, is a type of insurance that provides coverage for a business’ property and liability risks. BOPs are designed to be affordable and provide a comprehensive package of coverage options for small businesses.

There are several different types of policies available, and each one is tailored to the specific needs of the business. When you understand what is covered under a business owner’s policy, you can select the policy type that will best fit your company’s needs.

BOPs usually are a better option than trying to purchase individual policies, since they’re packaged to cover both liability and property issues. We’ll discuss more in depth about what is covered under a business owner’s policy.

Who Needs Business Owner’s Insurance? 

Most business owners need to have some form of business owner’s insurance. It’s a great option for small businesses, as it’s affordable and provides a wide range of coverage options.

If you own the business property, or any property within the building like computers and other equipment, having a BOP is essential. Companies that handle sensitive client data or information should also set up a policy in case of any disaster in which that information is stolen or damaged.

What Does Business Owner’s Insurance Usually Cover?

It’s vital to know what is covered under a business owner’s policy and the extent of that coverage. Business owner’s insurance usually covers the company’s property in cases of theft, damage, or loss. If something in your building is lost or stolen, your BOP will generally help cover the loss. Any damage that occurs to your building will also be typically covered by the policy.

It can also provide coverage for liability cases, such as accidents that occur on company property. A very common scenario would be a “slip and fall” accident that could occur with a client or third-party member. The policy could help cover the medical costs or other bills that might accrue from the accident.

What is Not Covered Under a Business Owner’s Policy?

While understanding what is covered under your BOP is essential, knowing what is not covered can be equally pivotal. There are some fairly common things that are not typically covered under a business owner’s policy.

  • Injuries that happen to your employees while they’re on the job are not covered by your business owner’s policy, as they are dealt with through worker’s compensation insurance instead.
  • BOPs also generally don’t cover any professional services that your company might provide. So, if you have a consultant come in and they do something wrong, the policy will not cover the damages.
  • If there are damages that occur to a client because of inaccurate or incomplete information given to them, those also won’t be covered by a BOP in most cases. Be careful that suggestions given are as accurate as possible to avoid problems.

It’s important to understand all of the exclusions in your policy so that you can make sure you’re adequately covered. Understanding the risks and what is covered under a business owner’s policy will save you time, stress, and money.

How to Choose the Right Business Owner’s Policy 

Understanding the ins and outs of a business owner’s policy can be difficult, as there are various aspects and regulations involved. However, it’s essential to be well-educated on what your company is covered with under a policy.

At Bethany Insurance, we can help you select the policy that will best protect your business and property to ensure you have the coverage you need. Contact us today to get started!