What is a Business Owners Policy for Small Business?
A Business Owners Insurance (BOP) is a “package” product that typically includes property, business interruption/continuation and liability insurance.
Sometimes, purchasing a BOP can be a less costly option than buying individual policies. A home-based business or a company with only a few employees may start out with a BOP and then expand coverage as the company grows.
However, a BOP typically does not include commercial auto insurance, workers’ compensation, health or disability insurance or liability insurance for claims of wrongful professional practices.
A business owners policy generally combines the following coverage types one convenient bundle:
- Commercial property insurance—Covers property losses from common perils, which is an event or situation that causes property damage or loss. It also covers office equipment, furniture, inventory, machinery, raw materials, computers and anything else that is vital to business operations.
- General liability insurance—Covers a company’s legal responsibility for any harm it may cause to others, up to the policy limit. It also covers attorney fees and medical bills for anyone injured by the company.
- Business interruption insurance—Reimburses for loss of income if a covered disaster interferes with the successful operation of the business.