What is a Business Owner’s Policy?
A Business Owner’s Policy (BOP) is a package of insurance coverage that is purchased by small and mid-sized businesses. This package helps to protect the business owner against major property and liability risks. Coverage can also be purchased separately but generally a BOP will offer you lower premiums. Like most insurance policies, you may get better rates if you purchase other policies from your broker.
What Does a Business Owner’s Policy Cover?
- Property and personal business property
Buildings rented or owned by the business may be covered. This may also include any additions or construction in progress and any fixtures.
- Business interruption
Also known as Business Income Insurance, business interruption insurance covers the loss of income that a business may suffer due to disasters. These disasters may be natural or man-made. Your expenses to rent a temporary location for your operations may also be covered.
Liability coverage protects the business from harm caused to others as a result of your employees or business operations. Bodily injury and property damage resulting from your products are common situations.
What BOP Does NOT Cover
BOPs generally will not cover professional liability, worker’s compensation, health, disability and auto insurance. Insurance policies will need to be purchased separately.