A business owners policy (BOP) combines key insurance coverages into one package tailored for small- and mid-sized businesses. It simplifies the process of obtaining essential coverage and is often more affordable than purchasing policies separately.

What Does a Business Owners Policy Cover?

The coverages included in a BOP may vary by carrier, but most BOPs include the following types of insurance:

• Commercial property insurance may cover physical assets like buildings, equipment, inventory and furniture in case of fire, theft or some severe weather events.

• General liability insurance may reimburse legal fees and damages if your business is held responsible for third-party bodily injuries or property damage.

• Business interruption insurance can help cover lost income and operating expenses if your functions are disrupted due to a covered incident.

You can also customize your policy to better reflect your day-to-day operations and exposures. Optional coverages, such as data breach protection, commercial auto insurance, equipment breakdown, crime or merchandise spoilage, can often be added.

Who Is Covered Under a BOP?

Coverage generally extends to the business entity, its owners and employees while acting within the scope of their work. Depending on your arrangement and the policy terms, some coverage can also include temporary workers, volunteers or subcontractors.

How Much Does a Policy Cost?

The cost of a BOP varies based on several factors, including your revenue, location, industry risk, number of employees and the value of your business’s property. Your premium will also depend on the specific risks your business faces and the limits you choose.

Get In Touch

Contact Deale & Associates Insurance Agency today to learn how a BOP can fit into your risk management strategy. Our team is here to answer your questions and provide affordable options.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.