A Business Owners Policy (BOP) is a crucial safeguard for your company's financial health and operational continuity. It bundles essential coverages into one convenient package, providing comprehensive protection against common risks faced by small to medium-sized businesses.
A Business Owners Policy (BOP) is a comprehensive insurance package that combines property, liability, and business interruption coverage into a single policy. It's designed specifically for small to medium-sized businesses, offering a cost-effective way to protect against a wide range of potential risks and losses.
BOPs are typically designed for small to medium-sized businesses with less than 100 employees and revenues under $5 million. Eligible businesses often include retail stores, restaurants, small offices, and service-based businesses. However, eligibility can vary among insurance providers.
The property insurance in a BOP typically covers buildings (owned or rented), business equipment, inventory, and outdoor fixtures. It usually protects against named perils such as fire, theft, vandalism, and certain natural disasters. Some policies may offer "all-risk" coverage for broader protection.
While a BOP provides comprehensive coverage for many aspects of your business, it typically does not include workers' compensation insurance. You'll need to purchase a separate workers' compensation policy to cover work-related injuries or illnesses of your employees.
Yes, most insurers allow you to add endorsements or riders to your BOP to cover specific risks unique to your business. Common add-ons include professional liability coverage, data breach protection, or equipment breakdown coverage.
While both offer bundled coverage, a BOP is pre-packaged for small to medium-sized businesses and typically offers less flexibility in terms of coverage options. A CPP is more customizable and is generally better suited for larger businesses or those with more complex insurance needs.
Standard BOPs typically do not cover damage from floods or earthquakes. These are usually considered separate perils that require additional, specific coverage. If your business is in an area prone to these risks, consider purchasing separate policies or endorsements.