Taking three basic, necessary insurance coverages and packaging them together, a business owners policy (BOP) protects you from the most common risks you face as a small business owner with:
- Commercial Property Insurance
- Liability Coverage
- Business Interruption Coverage
Protecting small businesses with coverage for property damage and loss of income due to business interruption – as well as third-party bodily injury, medical bills, and property damage – BOP policies allow you to pick coverage that matches your business size, making them perfect for small businesses.
BOPs are a popular and affordable choice for small businesses. These pre-packaged policies are most likely to benefit businesses with fewer than 100 employees.
Learn more about the coverages included in a BOP policy and how they protect small business.
How Does a BOP Protect Small Business?
BOPs provide small businesses with an affordable, three-in-one insurance package that covers most commercial risks, including:
Commercial Property Insurance
Offering coverage for the building that you operate your business in (whether you lease or own) against common risks such as theft, fire, severe weather, and vandalism, commercial property coverage protects your physical property, including:
- equipment
- supplies
- materials
- inventory
Commercial property insurance protects your business against losses from accidental damage, building repairs, stolen property, and equipment loss.
Liability Coverage
The cornerstone coverage of every business insurance portfolio should be liability insurance.
Protecting you from paying out for harm or damage to others, liability coverage will help you pay for third-party:
- bodily injury
- medical bills
- property damage
- lawsuit costs
With the prevalence of lawsuits in today’s society, liability insurance is an absolute must-have coverage for every business – big and small.
Business Interruption Coverage
40 to 60 percent of small businesses that are affected by a disaster never open their doors again. Helping cover the loss of income from fire or other catastrophe that interrupts your business operations, business interruption coverage includes:
- Revenues lost due to closure
- Temporary location operating costs
- Fixed expenses (rent, utility costs)
With a BOP in place, as well as additional necessary coverages, your small business will be protected with the coverage it needs to keep operations running smoothly, should disaster strike.