What's a BOP and why do you need one?
A BOP, or business owner's policy, this is a type of insurance that can help protect your small business from a variety of claims. It typically includes two core coverages: commercial general liability insurance (CGL) and commercial property insurance.
CGL insurance protects your business from claims of bodily injury or property damage that you or your employees may cause to others. So if a customer slips and falls in your store, your CGL insurance could help pay for their medical expenses and any property damage. If you are at a client's home and accidentally break an expensive piece of art, it would be covered under the property damage part of your general liability.
Commercial property insurance protects your business's buildings, equipment, and inventory from damage caused by fire, theft, vandalism, and other perils. So if your business is damaged by a fire, your commercial property insurance could help pay to repair or replace the damage.
In addition to these two core coverages, BOPs can also include optional coverages such as:
Business interruption insurance: This coverage pays for the lost income and extra expenses your business incurs if it has to shut down for a covered loss. So if your business is damaged by a fire and you have to close for a week, your business interruption insurance could help pay for your employees' salaries, rent, and utilities.
Employment practices liability insurance: This coverage protects your business from claims of discrimination, harassment, or wrongful termination.
Crime insurance: This coverage protects your business from losses caused by theft, robbery, forgery, and other crimes.
Personal Property of Others insurance: This coverage protects the items that belong to someone else, but are with you and in your care, custody, and control. Maybe you have a client's chair at your business because you are reupholstering it. A loss to the client's chair by a covered claim would be covered under this line of coverage.
So, why do you need a BOP? Well, in a nutshell, it can help protect your business from financial losses caused by a variety of claims. And that can give you peace of mind so you can focus on running your business.
If you're a small business owner, I recommend talking to an independent insurance agent about getting a BOP. that fits the needs of your business. It's an important coverage that can help protect your business from financial losses.