What Is a Businessowners Policy (BOP)?

A businessowners policy (BOP), combines various insurance coverages – such as commercial property insurance, general liability and business income – into one convenient policy.

BOP coverage options

A basic businessowners policy typically includes three or four key coverages:

• Commercial property insurance, which protects your building, equipment and inventory.
• General liability insurance, which helps cover any medical expenses and bodily injury/property damages you and your employees are legally responsible for.
• Business income, which helps you pay bills and employees if your business has to temporarily close.
• Crime insurance, which helps protect your business from fraud, theft and forgery.

Additional BOP coverage options include:

• Accounts receivable, which protects against losses from unpaid invoices.
• Cyber liability, which covers attacks and damages to computer systems or electronic data.
• Equipment breakdown, which covers your equipment, including computers.
• Personal and advertising injury, which covers copyright infringement, libel and slander.
• Rented vehicles, which provides liability coverage for vehicles you lease, hire or borrow.
• Employment Practices Liability, which covers liability of wrongful acts arising from the employment process.

When considering a BOP, keep in mind that it often makes sense to choose coverage specific to your industry and that some coverages aren't available in a BOP, such as business auto, workers' compensation, and employee benefits.

What types of businesses could benefit from a BOP?

Whether you own an auto repair shop, a retail store, an accounting office, or many other types of small business, a businessowners policy can be tailored to your needs. A BOP may make sense if your business:

• Is located outside of your home.
• Has fewer than 100 employees.
• Has less than $5 million in annual sales.
• Has property or equipment you want to protect.