Business Owners Insurance That Fits Your Needs
Insurance companies selling business insurance offer policies that combine protection from all major property and liability risks in one package. (They also sell coverages separately.) One package purchased by small and mid-sized businesses is the business owners policy (BOP). Package policies are created for businesses that generally face the same kind and degree of risk. Larger companies might purchase a commercial package policy or customize their policies to meet the special risks they face.
- Property insurance for buildings and contents owned by the company — there are two different forms, standard and special, which provides more comprehensive coverage.
- Business interruption insurance — which covers the loss of income resulting from a fire or other catastrophe that disrupts the operation of the business. It can also include the extra expense of operating out of a temporary location.
- Liability protection — which covers your company’s legal responsibility for the harm it may cause to others. This harm is a result of things that you and your employees do or fail to do in your business operations that may cause bodily injury or property damage due to defective products, faulty installations and errors in services provided.
BOPs do NOT cover professional liability, auto insurance, worker’s compensation or health and disability insurance. You’ll need separate insurance policies to cover professional services, vehicles and your employees.
- Ensure property owned by the company is covered.
- Cover your business from disasters in the event of being out of operation.
- Protect your company throughout its business operations.
Frequently Asked Questions
What is the difference between general liability insurance and a business owners policy?
A Commercial General Liability (CGL) policy will cover liability losses, while a BOP will cover both liability AND property losses.
Who is eligible for a BOP?
The typical business that is eligible for a BOP: has few than 100 employees, has a small office or workplace and makes less than $1 million in annual revenue.
What does a BOP NOT cover?
BOPs do not cover professional liability, auto insurance, worker’s compensation or health and disability insurance. You’ll need separate insurance policies to cover professional services, vehicles and your employees.