Your Guide to Business Owners Policy (BOP) Coverage

Businesses located on a main street

A business owner typically has many responsibilities. One of them is helping to ensure their business is properly protected from potential losses. It can be a necessity to have the right insurance in place when you're in business.

As a business owner, do you know how to find adequate insurance coverage?

Most small business owners consider general liability and commercial property. These policies can help protect your business and both can usually be found in a Business Owners Policy.

Don't wait until you experience a loss to learn about basic business insurance. Be proactive when it comes to protecting your business. Read our guide on BOP insurance plans.

What is a Business Owners Policy?

Business Owners insurance is a type of policy that can cover both your property and liabilities in one package. It's popular with many small and medium-sized businesses.

A BOP includes coverage for things like property damage, lost business income, and third-party claims.

Think of it as having multiple coverages in one policy. You can protect your business against risks that may be specific to your industry.

Is BOP and GL Insurance the Same?

Sometimes people make the mistake of thinking BOP insurance and general liability is one and the same. It's a huge misconception and can often be a costly one.

If you run a business that interacts with the public, you may want to consider a general liability insurance policy. This type of insurance can cover third-party lawsuits for bodily injury and property damage. However, it might not cover fire, theft, or any other kind of damage or destruction to your property.

A Business Owners Policy not only includes general liability, but also covers damage or loss to your assets and inventory. 

If you own or house valuable assets, you might want to look into a Business Owners plan. A BOP can give you general liability coverage and other coverages like property insurance, it could be more convenient than if you were to purchase separate policies.

What is Covered Under a BOP?

When it comes to business insurance, policies can differ between insurance providers. This can include the coverages that make up a Business Owners Policy.

Most BOPs include general liability and business property. There may be additional coverage options depending on the insurer. Policy limits may also differ between insurance providers. That's why it can be important to get in touch with a reliable insurance provider who's knowledgeable in BOPs.

Whether you're a new business owner or changing an existing policy, you want a reliable insurance provider. They can help walk you through your business needs and help determine the amount of coverage you need.

Here is a look at the different coverages you can incorporate into a Business Owners Policy.

Business Property Insurance

We get it - it's tough to think about the bad things that could happen to your business. The reality is things can happen that are out of our control. That's why it can be vital to have this type of business insurance coverage.

Business property insurance can help protect your assets and inventory. In cases where you can't operate your business because of a claim, your operating expenses could be covered.

A BOP can also help keep your business safe from financial losses related to fires, burglaries, and wind damage.

When researching property insurance, remember that exclusions on basic policies can have limits. These limits could impact the capacity of your business to reopen or continue operations following a loss.

As with most insurance, there are some exclusions. Business property insurance may exclude the following:

You should also make sure you have a clear understanding of what your policy includes before making a claim. 

Selecting the Right Amount of Coverage

Figuring out how much insurance you need can be tricky. Your business and staff are at risk if you don't have enough coverage. You don't want to get too much coverage and end up paying for more than you need. One way to get started is to determine how much your property is worth.

Cyber-Risk Insurance

If you store client data online as a business owner, it can be important to have a data breach response plan in place. There are specific steps your company may want to take once you realize your data has been breached.

Prior to the possibility of a breach, you might want to think about cyber insurance. Cyber risk insurance can provide essential coverage.

Cyber insurance is also known as cyber risk insurance or cyber liability insurance. It is a type of coverage that can allow businesses to transfer costs associated with recovering from a cyber-attack or similar event.

Cyber insurance policies may include coverage for your company to respond to:

  • Data breaches
  • Malware attacks
  • Ransomware attacks
  • Business account breaches
  • Compromised emails

Your claim could cover the following:

  • Customer notification costs
  • Investigative expenses
  • Legal fees and settlement costs

It can be crucial for business owners to follow state and federal guidelines when it comes to data protection. Data breaches can be expensive because customers and industry partners trust that you have security protocols in place to help protect their personal information.

General Liability Insurance

We've already touched on general liability insurance. Here is a more in-depth look at this type of coverage.

Usually, general liability insurance can cover you and your company if you're named as the cause of a third-party claim, including the following:

  • Bodily injury
  • Property damage caused by your services or operations

General liability insurance typically does not cover the following:

  • Employee Injuries
  • Auto Accidents
  • Intentional Actions
  • Professional Mistakes

Most general liability policies can cover you against several kinds of claims. This could include slips and falls, slander, libel, false advertising, and third-party claims.

What is Not Covered Under a BOP?

The Business Owners Policy is not an all-inclusive deal. There are insurance coverages you may want for your business that you might need to purchase as stand-alone policies.

Not all insurance providers that offer Business Owners Policies include these types of coverages.

Let PolicySweet Give You a Quote

If you're a main street or home-based business owner, PolicySweet® is here to help with your business insurance needs.

Our company offers a wide array of insurance options to help meet the needs of businesses across industries. Plus, we can customize our coverage to fit your specific risks. We can provide a quote for both your Business Owners Policy and Workers' Compensation coverage.

Please don't put off getting the coverage your company needs to help protect its assets. Call us today at 1-800-625-8257 or click here to start an online quote.

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