Business Owners Policy BOP
Often referred to as a BOP, the standard business owner’s policy is an excellent start for most businesses to meet their basic insurance needs. The reason this policy is so effective for so many businesses is that it covers many basic coverage needs, bundles several services together, and offers an affordable price point.
All of these are critical for new businesses and business owners who may not be certain, at this point, of the full scope of the insurance needs of their businesses.
What is Included in a Business Owners Policy?
There are three main types of business insurance that most BOP policies provide:
General Liability Insurance
Buildings and Business Property Coverage
Loss of Income Coverage
This is not the only insurance you’re likely to need as a business owner – not by a long-shot, but it is a good foundation for a policy that can be easily personalized to meet the specific and unique needs of your business.
One vital type of insurance coverage that’s not available with the standard BOP is workers compensation insurance (WCI). This type of insurance is required for almost any type of business depending on what state you are in.
Additional Insurance Coverage Businesses Need
There are many issues beyond the scope of the standard business owners insurance policy. Not all of them will apply to every business.
Keep these insurance coverages in mind as you make insurance buying decisions on behalf of your business:
Commercial Auto Insurance
Data Breach Insurance
Electronic Data and Equipment Coverage
Employment Practices Liability Insurance (Errors and Omissions)
Identity Theft Insurance
Non-Owned Vehicle Liability (critical for businesses with delivery drivers)
Umbrella Insurance (additional liability coverage)
Valuable Papers and Records Coverage
Don’t forget to consider industry-specific insurance needs such as insurance for restaurants (spoilage insurance, equipment breakage coverage, etc.), alcohol service (liquor liability insurance), and manufacturers (recall insurance especially).
Always consult with an independent insurance agent whenever you have questions or concerns about the type or amount of insurance coverage your business needs.
Any submissions or payments made via this website do not constitute a binding agreement to your policy or coverage(s). Changes and payments to policies are not effective or binding until you, or any party involved, receive official notice from either your insurance agent, or your insurance company.