Commonly called BOP, a business owner policy is an insurance policy that protects all the major aspects and potential liability risks of a business in one package.
There are different individual policies contained in a business policy. However, a BOP is an amazing option for business owners because the summation of all these individual policies in a BOP is cheaper than their original total cost.
BOPs are specifically designed to help small and mid-sized businesses enjoy a wide range of insurance policies at a subsidized rate.
Which Type of Business is Eligible for a BOP?
Small and mid-sized businesses in low-risk industries are the types of businesses usually considered for a BOP. These businesses usually have a small to a moderate number of employees (less than 100) operating on-premises and do not make up to 1 million dollars in revenue yearly.
Some of these businesses include:
● Small to medium-sized restaurants
● Office based businesses
● Retail stores
● Cleaning services
● Consulting agencies
● Nonprofit organizations
What does a BOP Do for Your business?
A BOP typically contains components of commercial property and general liability insurance in one convenient package and covers potential damages or lawsuit risks from:
● Advertising Injuries
● Product liability
● Third-party bodily injury
● Third-party property damage
● Sometimes, the extra expense of operating out of a temporary location
The commercial property insurance part covers your building in case of:
● Weather-related events
It is, however, possible to make other additional coverage for your business, such as flood insurance, spoilage of equipment, forgery, vehicle insurance, and so on. For instance, a logistics company may want to include additional coverage for vehicle insurance in its package.
How Does a BOP work?
A BOP covers only damage caused by specific events listed in the policy. In addition, the properties covered by a BOP must be within a specific proximity of the business premises.
Get the Right BOP for your business by simply reaching out to one of our agents.