Any business owner knows that every company is vulnerable to certain types of risks and liabilities, no matter what industry it is in. A business owner’s policy (BOP) combines business liability and commercial property insurance into a single policy.
Business Owner’s Policy Coverage
Although a company can typically customize its business owner’s policy to meet its unique needs, general liability coverage and commercial property coverage are both included in a standard BOP.
Risk Management Program
General liability coverage protects your business from third-party bodily injury and property damage. It can also shield your company against reputational harm and claims related to product liability. Property damage and bodily injury can occur as a result of faulty installations, defective products, or errors in services provided.
Advertising-related injuries – such as a class-action lawsuit that claims your company failed to protect your clients’ privacy rights – are also covered by general liability insurance.
Property insurance covers both your business’s physical location and its contents, including equipment, tools, inventory, and furniture. A special policy can provide more comprehensive coverage (e.g. appliances and fixtures).
Certain BOPs also include business interruption coverage, which pays for the loss of income resulting from a fire or other disaster that impacts your business operations. (This may also include the additional expense of conducting business from a temporary location).
What Does A BOP Not Cover?
A business owner’s policy does not typically cover liabilities tied to the services that a company provides, such as product recalls, or worker’s compensation, or health and disability insurance. A BOP also does not cover damages resulting from inaccurate advice given to clients; for this, you would need to purchase an errors and omissions (E&O) insurance policy.
Who Needs A BOP?
Businesses with less than 100 employees, make less than $1 million in revenue or have small workspaces or offices are among the most common businesses who should acquire a BOP. More specifically, here are some examples of the types of businesses that can benefit from a BOP:
- Retail stores
How Much Does A BOP Cost?
The cost of a business owner’s insurance policy generally depends on several factors, including:
- A company’s size
- The type of industry
- A business’s location
- The amount of coverage needed
Speak To The Commercial Insurance Professionals At CI Solutions
Reach out to the agents at CI Solutions for more information on the many benefits of a business owner’s policy. Our team has years of experience providing comprehensive BOPs to companies of different sizes and across various industries.