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What Are the Advantages of Having a Business Owners Policy (BOP)?

If you are a business owner, you know the risks of loss you often face. Having the right insurance policies in place can be the difference between losing your business and recovering successfully in the event of a disaster. A business owners policy (BOP) might be just what you need to protect your business before misfortune strikes.

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What Are the Advantages of Having a BOP?

A business owners policy includes property and business liability insurance all in one policy. It is designed for small to medium businesses and has a premium that is usually less expensive than what it would cost if the two coverages were not bundled.

A BOP can be constructed to meet the needs of your specific business. With the help of your insurance specialists, you can design a package unique to your company’s needs. The primary types of coverage that are generally included in this policy are:

  • Property Insurance This provides coverage for damage to the property caused by certain events. These events are specified in the policy, and often include fire, wind damage, smoke damage, vandalism, and explosions. This policy will cover damage to the building, whether owned or leased. It also covers business-owned items, as well as rented or leased items that are on-site at the time of the damaging event.
  • Premises Liability – This policy covers damages of those who may be injured while on your property, including injuries by defective products, slip-and-fall accidents, and more.

Other Common Coverages That May Be Included in a BOP

Depending on the size and needs of your business, there may be other coverages that you can bundle into your BOP along with property and liability. Some possibilities include:

  • Business Interruption or Business Income Insurance – If your business qualifies, these policies can be a lifesaver. If your premises are damaged or ruined by the covered event and you cannot conduct business, this will cover your loss of income or even the extra expense of doing business in a temporary location.
  • Coverage for Inventory Loss – Property insurance covers your inventory and business equipment in the event of a break-in or other disaster.
  • Crime Coverage – This policy covers a variety of crimes, including break-ins, theft, and computer fraud.

See if Your Business Qualifies for a BOP

Not every business qualifies for a BOP. Eligibility depends on the type of business, number of employees, specific risks, and other factors. Requirements may also differ among different insurance companies.

At SIP Risk, we can help you determine whether a BOP is right for your small or medium-sized business. Contact one of our insurance specialists for more information or to get a quote.

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