WEDNESDAY, DECEMBER 7, 2022
A Business Owner’s Policy or BOP combines business property and business liability insurance into one business insurance policy. You can think of it like a homeowner's insurance policy for a business.
What Does A Business Owners Policy Cover?
Business owners’ insurance helps cover claims that could arise from your business operations. These include claims of bodily injury or property damage. They also include claims related to personal and advertising injury. BOP insurance also helps cover your business from claims resulting from things like fire, theft or other covered disasters.
How Much Does A Business Owners Policy Cost?
The cost varies based on several factors including your location, industry, experience, claims history number of employees, sales and others.
Is a business owners policy different from general liability?
When people think about business insurance, they're thinking about the liability for the most part. They're thinking, what happens if someone slips, trips and falls in my store and sues me? That is general liability in its purest form. Slips, trips, Falls and accidents to a third party and someone Sue's you, that's General liability. A business owners policy is actually a package of coverages that's put together in one policy to make it easier for small businesses to purchase their insurance.
So before the business owners policy existed, businesses would have to purchase every single coverage individually. General liability, property business income, accounts receivable; all those kind of smaller and Soleri coverages that are very important but may be tedious to package all together and in some cases even left out or forgotten.
So what insurance carriers did was take businesses that are relatively the same and put them together. So let's say a shoe store for example, there are only so many hazards within that shoe store. So insurance companies created a business owners policy for shoe stores and then they underwrite it based off of common risks that take place and they created coverages around that. Including building coverage, business property, coverage for computers and coverage for employee dishonesty and all those kinds of things.
So general liability is what's commonly thought of when thinking about business insurance but the reality is that's just one coverage that's included inside business owners policy.
Though a BOP has a lot more coverage to it. Not every type of business can get a pop just because their risk are so unique but that's something you could talk further with your agent with and if you have any additional questions about your business insurance feel free to reach out to us.
Learn more about Business Owner's Insurance Coverage.
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