Business Owners Policy Insurance
- Mary Campbell
- Mar 14
- 3 min read
Updated: Mar 28
What is Business Owners Policy aka BOP insurance?
A Business Owners Policy (BOP) is a bundle of general liability insurance and commercial property insurance. It’s designed to help small-to-medium sized businesses safeguard against many of the common risks they face on a daily basis.
What does a BOP cover?
At its essence, a BOP combines two of the most important types of coverage for businesses, general liability insurance and commercial property insurance:
General liability coverage protects a business against the risks that arise when interacting with third parties. It can provide the investigation, defense, and settlement for third-party claims resulting from non-employee bodily injury, property damage, and personal and advertising injury.
Commercial property insurance covers a business’s property and items from accidental loss or damage. It can be split into two sub-categories:
Business building insurance (BBI) covers damage to the building structure itself, whether it’s an office space or an entire warehouse.
Business contents insurance (BCI) covers theft or damage of business property inside or within 100 feet of the building.
Business interruption insurance covers loss of business income sustained due to interruption of operations as a result of direct physical loss or damage. If physical damage to your property prevents your business from operating, this coverage could help you recoup precious lost income and even pay for additional expenses to temporarily “set up shop” somewhere else while you wait for repairs to be completed.
Who needs Business Owners insurance?
Business Owners Insurance is meant for businesses that have a small footprint. The vast majority of policyholders will be small-to-medium sized business owners who prefer the simplicity and cost savings of combining general liability insurance with commercial property insurance.
Why is BOP important?
While general liability coverage protects your business from third-party claims arising from bodily injury, property damage, and personal and advertising injury, it doesn’t cover accidental loss or damage to your property or belongings, or lost income due to business interruption.
Whether it’s the office space, the hardware you use, or the equipment that allows you to perform your job, all it takes is a break-in or accident to result in unexpected expenses. If that happens, can your small business continue to operate?
A BOP provides small business owners with both types of coverage with many additional coverages and extensions, combined in a more cost-effective and convenient package than if you were to purchase each coverage separately. That makes it a savvy choice for any business owner that wants to position their business for success.
What other kinds of business insurance do I need?
Although a BOP can protect you from many of the common risks associated with running a business, it won’t cover damages resulting from all types of risk. That’s why many business owners choose to purchase other coverages in addition to their BOP coverage
including:
Workers Compensation Insurance |
BOP FAQs
Is BOP required by law?
Neither general liability insurance nor commercial property insurance are required by law for the majority of businesses. However, many property leases require the renter to obtain general liability coverage. And just because something isn’t mandated doesn’t mean you shouldn’t have it. When a single accident could jeopardize your business’s success, investing in BOP insurance is an important safeguard.
How do I show proof of BOP insurance?
Does BOP protect my store, office, or physical location?
Does BOP protect my equipment and gear that travels with me to jobs?
How are these claims handled in my Thimble policy?
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If you have any questions, give us a call at JJC Insurance Agency 215-650-9292 or book online.
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