A businessowners policy (BOP), combines various insurance coverages – such as commercial property insurance, general liability and business income – into one convenient policy.
BOP coverage options
A basic businessowners policy typically includes three or four key coverages:
- Commercial property insurance, which protects your building, equipment and inventory.
- General liability insurance, which helps cover any medical expenses and bodily injury/property damages you and your employees are legally responsible for.
- Business income, which helps you pay bills and employees if your business has to temporarily close.
- Crime insurance, which helps protect your business from fraud, theft and forgery.
Additional BOP coverage options include:
- Accounts receivable, which protects against losses from unpaid invoices.
- Cyber liability, which covers attacks and damages to computer systems or electronic data.
- Equipment breakdown, which covers your equipment, including computers.
- Personal and advertising injury, which covers copyright infringement, libel and slander.
- Rented vehicles, which provides liability coverage for vehicles you lease, hire or borrow.
- Employment Practices Liability, which covers liability of wrongful acts arising from the employment process.
When considering a BOP, keep in mind that it often makes sense to choose coverage specific to your industry and that some coverages aren’t available in a BOP, such as business auto, workers’ compensation, and employee benefits.
What types of businesses could benefit from a BOP?
Whether you own an auto repair shop, a retail store, an accounting office, or many other types of small business, a businessowners policy can be tailored to your needs. A BOP may make sense if your business:
- Is located outside of your home.
- Has fewer than 100 employees.
- Has less than $5 million in annual sales.
- Has property or equipment you want to protect.