BOP (Businessowners Policy) Insurance

If you have a small to mid-sized business, you may be daunted by the number of risks you face, and the number and variety of insurance policies you will need to buy to cover those risks. A business owners policy, or BOP, may be the answer. A BOP is a package policy designed to offer small to medium sized businesses most of the insurance coverage they need in one convenient product.

There are some risks that BOPs do not include, and exact coverage and wording can vary from company to company, so it is important to review a number of options before you purchase your coverage. An Insurance Station agent can help you compare business owners policy quotes and find the coverage that is right for you.

What Is BOP Insurance?

If you are looking for a BOP insurance definition, it is simply a policy that provides both property and business liability insurance in one packaged policy. The cost of the combined coverage is typically less than it would cost to purchase each of the included coverage types separately.

A business owner policy is designed to cover the basic needs of small to mid-sized businesses at an affordable rate.

What Does BOP Insurance Cover?

The basic coverage in a typical BOP include:
• Real property coverage (if you own your own building)
• Business personal property insurance
• Loss of income (business interruption)
• Equipment off premises
• Employee dishonesty
• General liability coverage for the premises and operations
• Medical payments

The following are usually offered on an optional basis:
• Hired and non-owned autos (if you have a separate auto policy this is better included there)
• Loss of money and securities
• Loss of electronic data
• Employment practices liability

A BOP is not designed for a large, multi-location company with a need for a complex insurance program. However, it can be ideal for a smaller, one-location business.

What Is Not Included in a BOP?

Business owner policies will not normally include the following coverages:
• Liability and physical damage coverage on owned vehicles
• Workers compensation coverage
• Flood insurance
• Umbrella liability
• Professional liability or errors and omissions coverage
• Aircraft and watercraft
• Coverage for property in transit, particularly for an international shipment
• Coverage for more than five locations

All these risks can be covered in separate policies or in endorsements added to your current policy.

Will a BOP Save Me Money?

While all businesses need to control costs, small and medium-sized businesses often have more financial concerns and tighter margins than larger companies. You can often save on insurance rates by taking a number of measures. These include:
• Combining the critical coverage you need in a BOP
• Asking us for information on discounts. You may qualify for discounts based on:
• Combining multiple policies under one insurance company (such as commercial vehicle and property insurance)
• Improving the safety and security of your company with security systems, automatic fire sprinklers and employee safety training
• Asking us for information regarding other discounts you may qualify for, such as discounts for association memberships

BOP insurance is one way of combining a number of coverages in one policy in order to take advantage of packaged pricing, but there are other methods as well.

Since a BOP may not cover all of your business insurance needs, you will want to evaluate the benefits of purchasing your insurance policies separately against the option of buying a BOP and adding on any additional coverage you may need.

An Insurance Station agent can provide all the help you need to compare business owners policy quotes with other options and find the coverage that best suits your needs and budget.