A Business Owners Policy—usually called a BOP—packages several common types of commercial insurance into one policy for businesses that meet the insurer's eligibility requirements.
For the right company, a BOP can simplify business insurance.
Instead of Buying Every Coverage Separately, Can You Package Them?
Sometimes.
That's the basic idea behind a Business Owners Policy.
A BOP commonly combines commercial property and general liability protection and may include or offer other coverage depending on the insurance company and policy.
What Can a BOP Include?
Depending on the carrier and form, a BOP may include:
- Commercial property coverage.
- General liability coverage.
- Business income-related protection.
- Additional endorsements or optional coverages.
A BOP does not automatically cover every exposure a company faces.
Who Is a BOP Designed For?
Business Owners Policies are generally intended for eligible small or midsize businesses fitting a carrier's underwriting guidelines.
That can include various:
- Retail businesses.
- Professional offices.
- Service businesses.
- Property owners.
- Other qualifying operations.
Eligibility varies substantially by insurer.
Who May Need Something More Specialized?
Businesses with complex operations, significant property, specialized liability exposures, larger fleets or other unusual risks may require a more customized commercial insurance program.
A BOP is convenient when it fits.
Don't force it on a business just because it sounds simple.
Does a BOP Include Workers' Compensation?
Workers' compensation is generally handled separately from a standard BOP.
Commercial auto and professional liability also typically require separate consideration.
Is a BOP Cheaper Than Buying Policies Separately?
It can be cost-effective for qualifying businesses, but price should not be the only reason to choose one.
The question remains:
Does the package adequately address the business's actual risks?