Running a business is hard work, and you want to protect your growth and success every way you can. A business owners policy (BOP) can help with that by offering essential coverages. More than a general liability policy, a business owners policy helps not only with injuries and damages your company is responsible for but also with repairs to the business’s property or lost income due to damages that temporarily shut down your operations. You can also choose additional coverages that are best for your business, making a BOP customizable to what you need.
Is a business owners policy right for you?
A BOP is usually for small-to-medium sized companies with about 50-100 employees and under $5-6 million in yearly revenue. Usually, the business location is in a building you own that is under 35,000 sq. ft. An at-home business with no foot traffic may also be eligible for the benefits of a BOP. Examples of businesses that could qualify are retail stores, cleaning services, medical offices, beauty salons and more. New start-up business can also be considered.
What does a business owners policy cover?
Typically, a BOP offers these main coverages:
Property — Helps cover repairs or to replace your building(s) and business property such as furniture, equipment or computers destroyed or damaged by covered perils.
Business Interruption — Reimburses loss of income if your business is disrupted due to a covered incident and can pay for additional expenses if you need to operate out of a temporary location.
General Liability — Helps covers medical costs if your company is responsible for injury, property damage or other mishaps.
Talk to your agent for more details and information for your specific policy. Also, ask about what additional coverages are available. To customize your policy, consider endorsements for situations like cyberattacks, losses from unpaid balances by customers, liability for rented vehicles and more.
What does a business owners policy cost?
Every business is different, so the cost of your BOP will depend on several factors. The type of business you have, the amount of coverage you need, the number of employees you have and where the business is located are just some of the information that determines the price of a business owners policy. Discussing the details with your insurance representative will help you learn more about the cost for your specific BOP coverage.