As a business owner, you are responsible for safeguarding your company from potential liability risks. A Business Owner's Policy (BOP) is a comprehensive insurance package that covers a variety of risks, including customer injuries, property damage, advertising injuries, and more. It also includes business interruption insurance to help you cover lost revenue if your business has to slow down or temporarily stop its operations due to an act of vandalism, theft, or a covered disaster. General liability insurance is the first line of defense for a small business owner and is always included in a BOP.
It covers the cost of defending against claims for bodily injury, property damage, or personal injury. It can also be paid to cover medical claims. Insurance companies that sell commercial insurance offer policies that combine protection against major property and liability risks in a single package. They also sell the coverages separately. Larger companies can purchase a commercial package policy or customize their policies to meet the special risks they face.
A BOP combines several insurance coverages, such as commercial property insurance, general liability, and business income, into one convenient policy. The BOP for travelers includes many specialized coverages that can be adapted to the unique risks your company faces. Most insurance companies also include business interruption insurance in their business owners' policies. Business interruption insurance covers lost revenue when your business has to slow down or temporarily stop its operations after an act of vandalism, theft, or a covered disaster. If you already have general liability insurance, property insurance, or other type of coverage from a specific insurer, it's a good idea to ask them if they offer a policy for business owners.
NerdWallet recommends getting several commercial insurance quotes to find the one that best suits your business. The general liability part of a BOP protects your company in the event that someone files a claim against you or your company. Business interruption insurance is a great idea for all businesses that have recurring expenses, such as payroll. State Farm offers some policyholders the option of including this coverage in a BOP, which could make it an ideal option for professional services companies. If your business can't generate revenue for a while, business interruption insurance will help you continue to meet your obligations. Protect your company from liability risks derived from the services, advice or professional recommendations provided by your company.
If you're not sure if your company qualifies for a BOP, contact an insurance broker who can help you understand what types of business insurance you need. If you're a small business owner and have an office or storefront or sell physical products, then a BOP may be the right choice for you.
