A Business Owners Policy or “BOP” is a package policy typically combining General Liability and Property Insurance, along with other optional coverage, for small to medium sized businesses in lower risk businesses classes. A BOP may be available depending on the type of business, annual sales, number of employees and other factors.
BOPs typically include General Liability to cover your commercial liability and property insurance for physical assets, such as contents, that are leased or owned. The package insurance policy may also cover loss of business income and extra expense resulting from a covered loss.
The General Liability insurance coverage of a BOP is comparable to a typical Commercial General Liability (CGL) policy, providing protection against claims of bodily injury or property damage for which your business may be liable.
One of the reasons the BOP can be so important to the small business is the whole host of miscellaneous coverages provided in the policy. This is especially true for those BOPs tailored to particular businesses. A good BOP usually includes a number of nuisance coverages, covering very serious risks faced by small businesses. For example, forgery, counterfeit money loss coverage, glass breakage, and a number of other coverages.
The General Liability portion of the BOP does not cover errors or negligence from professional services, which would fall under E&O or other professional liability policies. BOPs also do not provide coverage for such items as Workers’ Compensation or Commercial Auto Insurance, which is one reason why it is so competitively priced.
As a business owner you don’t need to be an expert on this type of insurance, but you should have a basic understanding of your own business owners policy (BOP). A little bit of knowledge may come in handy when needed. At The Liberty Company Insurance Brokers, our Business Unit will be happy to explain the details of a BOP policy to you step-by-step to make sure it fits your business needs.
Please contact us to learn more about your options for Business Owners Policy insurance.