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Do you need a BOP? Business Owners Policy Insurance Explained

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.

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