What is Business Owner’s Insurance?

Free Insurance Quote Comparison

 Secured with SHA-256 Encryption

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by

UPDATED: Jul 16, 2021

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Business Owners Insurance, or BOP Insurance, combines some of the basic coverage needed by a typical small business into one standard package at a discounted premium. A Business Owners Policy (BOP) combines several types of commercial insurance, including General Liability and Property Insurance allowing small to medium sized businesses operating in a low-risk category to get the needed coverage in one policy. Consolidating all the necessary business coverage into a BOP insurance policy can be a good idea for small businesses looking to save money while getting their insurance needs covered.

How Business Owners Insurance Works

Typically a BOP insurance policy will provide the following coverage:

    t

  • Business interruption insurance (covering losses that cause you to shut operations or reduce production for a time). Business interruption insurance can provide money to off set lost profits or to pay continuing expenses (typically for up to a year for insured losses). t
  • Crime insurance (covering loss of money or securities resulting from burglaries, robberies or destruction) as well as losses from employee theft or embezzlement. t
  • Vehicle coverage for rented or borrowed vehicles.t
  • Business Owners Insurance insures a damaged property for replacement cost value, which means that you would receive enough from your settlement to replace the property at today’s value. t
  • General liability protection that insures against claims of bodily injury or property damage by someone injured at the business. The liability portion also covers the cost of defending lawsuits that claim you are responsible for causing bodily injury or property damage.

Other coverage can also be added to meet specific needs of the business. Make sure you know your need for business insurance, and get all the coverage required to protect your business.

Qualifying for a Business Owner’s Policy

Since a BOP insurance policy is specifically designed for small to medium sized businesses, the type of business can influence eligibility. Normally, companies with 100 employees or under and revenues of up to about $5 million or less are candidates for a BOP insurance policy. Some types of businesses, such as restaurants, may be ineligible for business owners insurance because of the specific risks inherent in the business. Ineligible businesses should look at the individual coverages which can be purchased separately. Underwriting standards will vary from company to company, so shop multiple companies to see which ones will sell your company a business owners insurance policy.

Why Buy a Business Owner’s Policy?

There are several reasons why BOP Insurance might be right for your company, such as:

    t

  • Low business insurance costst
  • Minimum Hassle- since the coverage is prepackaged, you only have one policy to review t
  • One monthly premiumt
  • Ability to add coverage need in the form of endorsements or riders

There are some cons to think about. Before buying BOP insurance consider some drawbacks including:

    t

  • Lack of flexibility in coverage limits. This may be a problem for business owners who want higher maximum coverage limits for their company. t
  • BOP Insurance does not cover every type of risk. Therefore, a business owner may need additional types of coverage such as fleet insurance for the automobiles you own, or higher limits not offered in a BOP Insurance policy.

Discuss your business insurance need with a reputable agent who can give you risk analysis review in order to determine if BOP insurance is right for you. If your business is eligible, then obtaining insurance coverage under a BOP insurance policy will streamline your insurance needs to one comprehensive policy.

Free Insurance Quote Comparison

Enter your ZIP code below to compare cheap insurance rates.

 Secured with SHA-256 Encryption