What Is Business Owner's Insurance?

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A Business Owner’s Policy (BOP) combines business property and business liability insurance into one business insurance policy. BOP insurance helps cover your business from claims resulting from things like fire, theft or other covered disasters. Business owners insurance also helps cover claims that could arise from your business operations. These include claims of bodily injury or property damage. They also include claims related to personal and advertising injury.  

 Policies like a BOP are built to cover companies that generally face the same risks. Customizing your BOP Insurance is an important first step when insuring your business. Small business owners should do this from the beginning to protect against losses and damages early on. 

If you rent or own workspace or have client contracts that require general liability insurance, you’ll likely need a Business Owner’s Policy (BOP). A BOP can help your business if: 

• You have a physical location: No matter what type of location you have, it’s important to have coverage for your business and assets. BOPs can help cover businesses run out of homes, rented or owned offices, stores or garages.
• There’s a possibility of you getting sued: For example, let’s say a customer at your workplace slips and falls. Without the proper business owner’s insurance, you may be looking at hefty out-of-pocket fees to cover the customer’s medical expenses.

You have assets that could get stolen or damaged: From digital assets and customer data to equipment, furniture, cash or inventory, some assets can be very hard to replace. With BOP Insurance, you have protection to help you if your assets get stolen or damaged. 

Your Business Owners Policy (BOP) bundles business property and liability insurance into one, including: Commercial property insurance for help protecting business property that you own, lease or rent, including your:   

• Buildings
• Equipment
• Inventory
• Furniture
• Fixtures

In addition to these, commercial property insurance also helps cover losses of accounts receivable and valuable papers or records. General liability insurance, which helps you if you’re sued for causing harm to a person and/or damage to property. It also helps cover the cost of your legal defense. It does this because businesses can be sued even when it’s not clear that they were in the wrong. Business income insurance for help replacing lost income if an unexpected event causes a suspension in your business operations due to a covered loss. This insurance acts as business interruption insurance. It includes important monthly benefits to employees, such as payroll and any other financial payments that are due to them. This also includes essential payments, like rent. There are additional coverages that you can add to your Business Owner’s Policy (BOP) to help tailor coverage to your specific needs.