Business owner's policy

What is business owner's policy insurance?

Business owner's policy insurance, also known as BOP insurance, is a packaged insurance coverage which includes general liability, commercial property and business interruption insurance. It is the most common bundled policy to have in place to provide overall protection for any sized business, across all industries. Generally, the BOP policy will cost less due to its bundled nature when compared to separate purchases of general liability and commercial property policies.

What does business owner's policy cover?

General Liability

Protects against everyday workplace risks such as bodily injury, lawsuits and other third-party risks that arise when dealing with customers. You can see additional information on what general liability covers by clicking here.

Commercial Property

If your property, inventory or equipment is damaged or stolen, a BOP policy can cover costs of repairs or replacement.

Business Interruption

In the event of a covered loss event, if your business cannot generate income, a BOP policy can pay for lost income and the costs associated with temporary relocation of your business.

Who needs business owner's policy insurance?

Every small business, regardless of size or industry, needs protection from common business risks in the event of a lawsuit, third-party injury or property damage. If your business has valuable property and equipment, you should consider a business owner’s policy. A business owner’s policy provides the same coverage as a general liability policy with the added protection of covering costs associated with damages to your property, equipment, and inventory.

See if you're covered

Small Business Owner

Managing your own business means you have enough on your plate.

E-Commerce Merchant

Selling online is hard enough without having to think about what else can go wrong.

Startup

Don't let unnecessary business risks make your founder journey bumpier than it needs to be.

Freelancer

Freelancing is all about keeping things simple and focusing on what you do best.

Why is a business owner's policy important?

A BOP policy includes general liability policy coverage, while also protecting your business property and potential lost income due to interruption of operations. Some landlords and building owners will require commercial occupants to retain business property insurance coverage which would be included under BOP. If you are legally required to have a general liability policy and would also like to protect your business property, a BOP policy may be the most appropriate coverage for your business.

Required or not, a business owner’s policy insurance guarantees that one big claim can’t derail you while you build and grow.

See if you‘re covered

What other kinds of business insurance do I need?

Bodily Injury

Someone other than you (or an employee) is injured and your business is responsible for medical, legal and damages.

Third-Party Property Damage

Customer property is damaged by you (or an employee).

Advertising and Reputational Injury

Your business is accused of copyright infringement, malicious prosecution, slander, libel, wrongful eviction and violating a person's privacy.

Product Liability

Products developed or sold by your business harm people or property, and your business is responsible for legal and medical expenses.

Business owner's policy Insurance FAQs

What is the difference between BOP and General Liability?
The main difference between with BOP and general liability is that BOP provides the same coverage as general liability with the added benefit of covering losses related to property and business interruption.
Is BOP required by law?
Insurance requirements vary by state and industry. However, your business can be exposed to high risks of financial loss if you are not properly protected. You may also lose potential clients and customers if you are asked to show proof of insurance and are not able to provide evidence of coverage. In short, although it might not be legally required, a BOP policy is crucial to protect your business from everyday risks.
How do I show proof of a BOP policy?
Once you’ve purchased your BOP policy, a Certificate of Insurance (“COI”) will be sent to you and can be presented to any party that requires proof of coverage. You can also request that the COI be sent to any third-party that requests verification of insurance.
What is an additional insured? Can I add one to my BOP?
An additional insured is any party that wants to be listed as a covered party under your policy. In certain cases, an additional insured might be a vendor, marketplace, landlord or any other third-party with whom you conduct business.
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Summary

This page explains the Business Owner's Policy (BOP), a bundled insurance coverage that includes general liability, commercial property, and business interruption insurance. It is designed to provide comprehensive protection for small businesses across various industries, often at a lower cost than purchasing individual policies. The page details what BOP covers, who needs it, its importance, and answers common questions about its benefits and proof of coverage.

Key Facts

Frequently Asked Questions

What is business owner's policy insurance?

Business owner's policy insurance, also known as BOP insurance, is a packaged insurance coverage which includes general liability, commercial property and business interruption insurance. It is the most common bundled policy to have in place to provide overall protection for any sized business, across all industries. Generally, the BOP policy will cost less due to its bundled nature when compared to separate purchases of general liability and commercial property policies.

What does business owner's policy cover?

General Liability: Protects against everyday workplace risks such as bodily injury, lawsuits and other third-party risks that arise when dealing with customers. Commercial Property: If your property, inventory or equipment is damaged or stolen, a BOP policy can cover costs of repairs or replacement. Business Interruption: In the event of a covered loss event, if your business cannot generate income, a BOP policy can pay for lost income and the costs associated with temporary relocation of your business.

Who needs business owner's policy insurance?

Every small business, regardless of size or industry, needs protection from common business risks in the event of a lawsuit, third-party injury or property damage. If your business has valuable property and equipment, you should consider a business owner’s policy. A business owner’s policy provides the same coverage as a general liability policy with the added protection of covering costs associated with damages to your property, equipment, and inventory.

Why is a business owner's policy important?

A BOP policy includes general liability policy coverage, while also protecting your business property and potential lost income due to interruption of operations. Some landlords and building owners will require commercial occupants to retain business property insurance coverage which would be included under BOP. If you are legally required to have a general liability policy and would also like to protect your business property, a BOP policy may be the most appropriate coverage for your business. Required or not, a business owner’s policy insurance guarantees that one big claim can’t derail you while you build and grow.

What is the difference between BOP and General Liability?

The main difference between with BOP and general liability is that BOP provides the same coverage as general liability with the added benefit of covering losses related to property and business interruption.

Is BOP required by law?

Insurance requirements vary by state and industry. However, your business can be exposed to high risks of financial loss if you are not properly protected. You may also lose potential clients and customers if you are asked to show proof of insurance and are not able to provide evidence of coverage. In short, although it might not be legally required, a BOP policy is crucial to protect your business from everyday risks.

How do I show proof of a BOP policy?

Once you’ve purchased your BOP policy, a Certificate of Insurance (“COI”) will be sent to you and can be presented to any party that requires proof of coverage. You can also request that the COI be sent to any third-party that requests verification of insurance.

What is an additional insured? Can I add one to my BOP?

An additional insured is any party that wants to be listed as a covered party under your policy. In certain cases, an additional insured might be a vendor, marketplace, landlord or any other third-party with whom you conduct business.

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Business Owner's Policy, BOP insurance, General Liability, Commercial Property, Business Interruption, Certificate of Insurance