A Business Owner’s Policy (BOP) is a bundle of three important types of business insurance: general liability insurance, commercial property insurance and business interruption insurance. BOPs are specifically intended for small businesses with fewer than 100 employees or less than $5 million in annual revenue. Here the business insurance specialists at Unity Insurance outline the benefits of a BOP and how to get one.
Who Should Consider a Business Owner’s Policy?
In general, any small business that has a brick-and-mortar location or assets such as machinery, equipment or inventory should consider the benefits of having a BOP. However, not all industries are eligible for BOPs due to additional risks that are associated in those fields. The chart below outlines a few industries that generally do qualify for BOPs and a few that generally do not:
What is Covered by a BOP?
As mentioned earlier, a BOP combines three popular business insurance policies into one. The combination of these three policies covers the costs of defending your business in court against certain lawsuits and medical bills for injured customers. They can also assist in replacing damaged property and more. Read more about each of the specific protections provided by each part of a BOP below:
General Liability Insurance
General liability insurance is always included in a BOP and covers your business in the event that someone is injured or property is damaged. It can also cover any cost associated with defending your business in a lawsuit. Any small business owner should have general liability insurance to protect their business from costly accidents or unforeseen circumstances. Think of this as your first line of defense as a business owner.
Commercial Property Insurance
Commercial property insurance covers the building that your business is located at as well as any equipment or inventory that is considered company property as long as the property is owned by the business. If leased, the building and other commercial property would not be covered. Commercial property insurance protects your business in the event that any of your commercial property is damaged, vandalized, stolen, lost, or even damaged by weather. In most cases, any small business that owns commercial property or equipment would benefit from the protection of commercial property insurance.
Business Interruption Insurance
The third type of insurance included in a BOP is business interruption insurance, which covers lost income when your business has to temporarily halt operations for a covered reason. In most cases, when your business is forced to slow down or stop operations due to vandalism, theft or a natural disaster, business interruption insurance will cover at least part of the cost of your recurring expenses to help keep your business running through a temporary stop or slow down in operations.
How Unity Insurance Can Help Protect Your Business
Choosing the right insurance policy for your business can feel overwhelming. Understanding the intricacies and limits of insurance policies can be overwhelming for many people, but taking the time to properly select insurance is vital. At Unity Insurance, our top priority is working with our clients to develop a policy that best suits their needs. Learn more about how the qualified insurance professionals at Unity Insurance can help you by calling 410-539-6642.