A business owner policy, also known as a BOP, is an easy way to get comprehensive insurance coverage in one package. It combines two different types of coverages, liability and property, into one policy. Many small to medium-sized business owners opt for this coverage because it simplifies their insurance and it covers them for the majority of risks that most businesses encounter.
There are three main things that this coverage provides: property and equipment insurance, business interruption insurance and liability insurance. Property insurance covers the building where you conduct business as well as the contents of the building or buildings. It also covers personal property for those on the premises, such as employees and customers. Business interruption coverage is part of the property policy. It protects you in the event that your place of business becomes unusable due to a natural disaster or fire. It provides for income loss and fixed costs that you incur while your business is inoperable, and in some cases it also provides for operating out of a temporary location. Liability coverage is legal coverage protection for claims as a result of bodily injury or property damage caused by the business’ employees or owner. There are additional coverages that can be added to the BOP for other specific risks.
Essential insurance protection for a company starts with a business owner policy. It covers a wide variety of the most common risks that small and medium-sized businesses face and keeps your business protected from the unexpected.