What Is A Business Owners Policy?

Obtaining a business owners policy (BOP) lets you combine general liability, commercial property, and business interruption insurance policies. Let's take a closer look at these three major types of insurance for business owners.

Business owners policy is a document that outlines the company's policies and procedures for handling different types of incidents. It can be used as a guide for employees, customers, and other stakeholders. This policy can also help to protect the business from legal consequences.

General liability insurance

• General liability insurance helps protect a business from an array of claims, including copyright infringement, reputational harm, advertising injury, bodily and property damage.
• Copyright infringement If you were accused of using third-party work in your advertisements or elsewhere without their authorization, your claim would come up.
• Reputational harm If you made a negative comment about another business or organization in a broadcast, in print, or online, it might damage that organization's business.
• Advertising injury Your company can potentially be harmed by tarnishing someone else, business, or company.
• Bodily injury The result of your business is a conventional injury claim. If a person visits your office or store and gets injured, a general liability policy will cover their medical expenses. Bodily injury claims can be as simple as a slip and fall by a client.
• Property damage As the owner of a business, you may be held accountable for someone else's property getting damaged during a visit. Property claims also extend to issues with a client's home or other property if you are the merchant on business. In addition, property damage insurance may also cover the reporting of electronic data.

However, despite your best efforts, you'll occasionally suffer claims like these. A $20,000 slip/fall claim could seriously harm your business if you don't have a general liability policy as your financial safety net. Without insurance, you'll have to cover the claim out of your own pocket. A large enough claim could be enough to put your business at risk.

Clients might require that you have general liability insurance before doing business with you. To assist in growing your client base, you ll need to have general liability insurance for your business.

Commercial property insurance

Commercial property insurance protects the contents of a business's buildings, assets, equipment, tools, inventory, computers, furniture, valuable papers and business records.

Business property insurance will pay for expenses related to replacing your property if it suffers damage or loss because of a covered story is about. It's also known as commercial-property insurance.

Business interruption insurance

Business interruption insurance helps your business recuperate uncounted revenue if your facility is shut down due to and various other problems covered by the terms of the policy, including a fire or severe weather.

Business interruption insurance may also cover the cost of renting temporary space while your business is operating. This is often known as business income insurance.

How Much Does a BOP Cost?

A business owner insurance policy typically costs around $53 per month, according to Insureon.

But costs will vary from company to company. Charges are based on your place of business, the size of your company, the industry, and the number of insurance products that you purchase.

A standard business owner plan is often less expensive than buying separate policies for liability, property, and business interruption.

What’s Excluded from a Business Owners Policy?

A BOP is helpful insurance coverage for small business owners. But there are a number of issues that aren't covered by a business owners policy. Therefore you should obtain complementary insurance policies:

• Commercial auto insurance
• Professional liability insurance
• Workers compensation

Commercial auto insurance There are company and nonowned automobile insurance. This includes coverage if your are using your company vehicle or your own car for business.

Professional liability insurance There are company and nonowned automobile insurance. This includes coverage if your are using your company vehicle or your own car for business.

Workers compensation It also allows employees who suffer from an injury or illness on the job to seek treatment. It is required in most states. If you have even one employee, you must purchase workers comp.

What Kind of Small Businesses Should Get a BOP?

A business with this characteristic is a good candidate for a business owner's policy. One that operates in a physical location such as a home-based business or a store or office. A company that possesses assets that could be stolen, such as products, cash, computers, inventory, and business furniture. 

A small company that is vulnerable to litigation. A business which has less than a hundred employees and less than $5 million in revenue. These sorts of businesses may be some of those great candidates for a BOP plan:

• Manufacturers
• Religious organizations
• Restaurants
• Technology Consultants
• Wholesalers
• Retailers

Is Your Small Business Eligible For a Business Owners Policy?

Insurance companies examine various factors when determining whether or not a business may be eligible for a BOP type of business, size of its primary location and annual revenue.

Business insurance companies also take into account financial stability, building construction, security features and fire hazards. If you pass all these standards, you will be able to receive a BOP.