Beginner’s Guide to Business Owners Package (BOP) Insurance

BOP (business owners package) insurance can be the ideal way to protect a small business. The bottom line is that you want the maximum possible coverage at the lowest possible rate, and BOP insurance could be your best option. 

The Basics of Business Owners Package Insurance

A BOP insurance policy covers all the major property and liability risks, and is typically the ideal insurance for smaller companies. A BOP policy protects your business against the following risks:

• Commercial Property Insurance: Your facility, equipment, and inventory make it possible to deliver to your customers. Property insurance provides coverage for damage to your building and the contents of your facility. We can evaluate the coverage you need to replace expensive equipment.
• Business Interruption Insurance: If a fire or other disaster has made it impossible to continue doing business, this form of insurance covers your losses and can pay for relocating your operation to another facility while repairs are performed.
• General Liability Insurance: Your company can be the target of a lawsuit or claim if another party was harmed. General liability insurance protects you against claims for personal injury, defective product claims, installation claims, and claims associated with substandard service. 
• Crime Insurance: If your business has suffered from fraud, theft, or forgery, a BOP insurance policy protects against the economic losses your business may suffer.

Does Business Owners Package (BOP) Insurance Cover All Risks?

BOP insurance does not cover every type of business risk, but added coverage can be arranged for the following:

• Professional Liability 
• Auto Insurance
• Workers’ Compensation
• Disability Insurance
• Cyber Liability
• Advertising Injury
• Rented Vehicle Coverage
• Employment Practices Liability Insurance
• Accounts Receivable Insurance
• Equipment Breakdown Insurance

What Businesses are Right for BOP Insurance?

Is your business right for BOP insurance? Many small businesses are eligible for business owners package (BOP) insurance. As a bundled policy, these policies are more affordable and available to smaller companies that meet specific criteria:

• Your business is considered low risk.
• Your business takes place in a building you own or rent, rather than in your home.
• You have less than 100 employees.
• You have less than $5 million in yearly sales.
• You own property and valuable equipment.

BOP Insurance vs. General Liability Insurance

The main benefit of BOP insurance is the lower cost – an important point for small business owners. The cost of bundled insurance is less than buying insurance policies for property and liability separately. However, for some businesses, general liability insurance will be required. General liability insurance covers bodily injuries, property damage, advertising, and personal injuries such as slander, libel, and copyright infringement claims. 

General liability insurance also covers the cost of attorney fees, court costs, and any settlement or judgment up to the policy limits – but not property damage. Some types of business activities may require general liability insurance. If you have a small business, work in a smaller facility in a lower risk industry, and do not require business interruption insurance that extends longer than 12 months, a BOP policy is more affordable and could provide the coverage you need. If you are looking for an affordable BOP insurance policy, contact one of our insurance agents to help you find the best policy at the lowest rate.