Safeguard Your Investment: Business Owner Policy Essentials
Safeguard Your Small to Medium-Sized Business with a Business Owner Policy (BOP)
What is a Business Owner Policy?
A Business Owner Policy (BOP) combines property and liability insurance into one cost-effective package designed for small to medium-sized businesses. It covers damages to your physical location and provides liability coverage for legal fees and settlements if someone is injured on your property.
What Does Property Insurance Cover?
This part of the BOP protects your physical business location from damage due to fire, theft, or other covered incidents. It also covers business interruption, helping you manage financial losses if your operations are temporarily halted.
Liability Insurance Explained
The liability component defends your business in legal matters and covers settlements arising from personal injury claims made against your business.
Additional Coverage Options
Business owners can enhance their BOP with additional protections against common business threats like cybersecurity breaches. Our agency tailors BOPs to address the specific risks within your industry.
Cost-Effectiveness of BOPs
BOPs are generally more affordable than purchasing separate policies for liability and property insurance, making them an excellent choice for budget-conscious businesses.
Eligibility Criteria for a BOP
Your business qualifies for a BOP if it has fewer than 100 employees, operates from a physical location, and generates less than $1 million in annual revenue. BOPs are ideal for low-risk businesses and not suitable for contractors, manufacturers, or predominantly online companies.
Coverage B Details
Coverage B specifically protects business property, extending to items within 100 feet of your premises and includes customer property in your care, such as electronics or vehicles at your repair shop.
Commercial Package Policy vs. Business Owner’s Policy
If your business is ineligible for a BOP due to higher risk, a Commercial Package Policy (CPP) may be suitable. CPPs offer flexible, tailored coverage for larger businesses and cover more extensive risks.
General Liability vs. Business Owner’s Policy
While general liability insurance only covers legal claims against your business, a BOP also protects your property and operations. If ineligible for a BOP, a CPP is an alternative, providing both liability and property coverage.
Estimating Business Insurance Costs
The median cost of a BOP is typically under $700 per year. By working with an insurance agent and customizing your risk management plan, you can potentially lower these costs.
Is a BOP Right for Your Business?
Every business needs insurance. If you qualify for a BOP, contact us to discuss your options and create a customized insurance plan that safeguards your business investment.
