What is a BOP?
Whether you’ve been running your small business for a while, or are finally ready to take the plunge and be your own boss—you and your business need protection.
A Business Owner’s Policy (BOP) are standard packages of basic coverages for small businesses, divided by industry (like homeowner’s insurance for a business. Here’s what you need to know about getting your own BOP:
What is a BOP?
A Business Owner’s Policy (BOP) is a combination of business property and business liability, and generally cheaper than purchasing the two policies separately. BOP insurance helps cover your business from claims resulting from things like fire, theft or other covered disasters. Business owners’ insurance also helps cover claims that could arise from your business operations. These include claims of bodily injury or property damage, and even advertising injury. Without a BOP, the business owner would be responsible for the costs of any liability claims, in addition to the costs of any damage to tools, equipment, materials, and other resources used to run your business.
A BOP generally includes:
- Property Insurance
- Liability Insurance
- Crime Insurance
- Business Interruption Insurance
- Crime Insurance
- Medical Payments Coverage
- Personal and Advertising Injury
- Equipment Breakdown Insurance
Who Needs a BOP?
BOPs are designed for businesses with fewer than 100 employees and less than $5 million in annual sales who want to be protected from the costs of potential lawsuits. It’s important to note that not all small businesses are eligible for a BOP—so be sure to check with your local insurance agent to see if your business qualifies.
If you have a brick and mortar business or use office space, damage to or loss of the building will also be included in the commercial property insurance part of your BOP.
If you are a remote business and you or your employees work from home, you still need additional insurance, as your homeowners policy will not cover your business needs. In fact, many homeowners policies specifically exclude at-home businesses. If all of your staff are remote, you should get general liability coverage at minimum, and always check what coverage exclusions your BOP comes with to make sure you get all the coverage you need.
What Are the Benefits of a BOP?
Besides saving money by combining your commercial property and liability policies into one, a BOP lets you worry less about potential losses and more on running your business. The coverage typically extends to libel and slander accusations against any advertisements, and can help replace lost income if your business has to temporarily close. Best of all, your BOP policy can likely be tailored to fit you and your business’s specific needs.
Before Something Goes Wrong
Don’t wait until something goes wrong—a BOP might protect you from huge liability and damage costs related to your business. Depending on your business’s specific needs, you may even want to consider additional coverage like commercial umbrella insurance, commercial flood insurance, or commercial auto insurance. In the event something unexpected happens, Bearingstar and our dedicated local agents are here to make sure you have the coverage you need. Contact us today for peace of mind.
Call us at 877-801-7424 in Massachusetts, and 888-519-9996 in Connecticut.
- What does a business owners policy (BOP) cover? Insurance Information Institute. https://www.iii.org/article/what-does-businessowners-policy-bop-cover
- Business Owner Policy (BOP). Investopedia. https://www.investopedia.com/terms/business-owners-policy.asp