Running a small business comes with many responsibilities. A Business Owners Policy can help eligible small-business owners protect their property, income and operations while preparing for the unexpected.
A Business Owners Policy, commonly called a BOP, brings several essential business insurance coverages together in one convenient policy. BOP insurance is designed for eligible small and midsize businesses that face common risks but may not need the complexity of a larger commercial insurance program.
What does a Business Owners Policy cover?
A BOP generally combines commercial property insurance, general liability insurance and business income coverage. Depending on the policy and the options selected, it may help protect:
- Your building, if you own it
- Business equipment, furniture and inventory
- Your business against certain claims involving bodily injury or property damage
- Lost business income and certain continuing expenses after a covered loss
For example, imagine a fire damages your shop and forces you to close temporarily. Property coverage may help with covered repairs or replacement of damaged business property, while business income coverage may help replace lost income and cover certain ongoing expenses during the restoration period.
Or consider a customer who slips and falls at your business. Liability coverage may help with covered medical expenses, legal costs or damages arising from the incident.
The exact protection provided depends on the policy’s terms, conditions, limits, exclusions and endorsements. Your independent insurance agent can help you understand what is, and is not, covered.
What types of small businesses may qualify for BOP insurance?
A BOP can be a practical option for many eligible small businesses, including:
- Retail stores and boutiques
- Professional and business offices
- Medical offices
- Certain restaurants and limited-cooking operations
- Owners of eligible office, retail or mixed-use buildings
Eligibility varies based on factors such as the type of business, location, building characteristics, operations, annual sales and prior loss history. That is why it is important to talk with an agent who can evaluate your business rather than relying on a one-size-fits-all solution.
Does your small business need a BOP?
You may want to discuss a Business Owners Policy with your insurance agent if:
- You own or lease a physical business location.
- You rely on equipment, inventory, furniture or other business property.
- Customers, vendors or delivery personnel visit your location.
- An unexpected shutdown would affect your income or ability to pay ongoing expenses.
- You have recently expanded, added services, purchased equipment or moved locations.
Small business insurance that can grow with you
No two businesses are exactly alike. In addition to the core protection in a BOP, optional coverages may be available for specific property, equipment or operational risks. As your business changes, your insurance should be reviewed to make sure it continues to reflect your current operations.
Consider speaking with your agent whenever you make a meaningful change, such as:
- Adding a new product or service
- Purchasing expensive equipment
- Renovating or expanding your location
- Increasing inventory
- Hiring employees
- Opening an additional location
Regular insurance reviews can help uncover potential gaps before a loss occurs.
Frequently asked questions about BOP insurance
How much does a Business Owners Policy cost?
The cost of BOP insurance depends on several factors, including your type of business, location, building, annual sales, coverage limits and prior loss history. An independent insurance agent can gather information about your operations and provide a quote based on your specific needs.
Does a BOP cover every business risk?
No single insurance policy covers every risk. A BOP provides important protection for many common small-business exposures, but additional policies or optional coverages may be needed based on your operations. Your agent can help identify potential gaps and recommend appropriate options.
Start with a conversation
A Business Owners Policy can simplify insurance for many small-business owners by bringing important property and liability protection together. However, the right solution depends on how your business operates and the risks it faces.
An independent insurance agent can review your business, explain available options and help you choose coverage that supports your needs and goals. Learn more about BankersBOP®, then contact your agent to find out whether it may be right for your business.
This article is for general informational purposes only and does not alter, expand or replace the terms of any insurance policy. Coverage is subject to eligibility requirements and all applicable policy terms, conditions, limits and exclusions. Coverages and availability may vary by state. Please consult your insurance agent for advice regarding your specific insurance needs.
