What Does a Business Owners Policy (BOP) Cover?

A business owners policy (BOP) provides essential insurance coverage for small and medium-sized qualified businesses. The insurer ultimately decides whether an individual business qualifies to purchase a BOP.

BOP coverage typically includes three insurance policies combined and discounted. Talk with the agents at RCU Insurance Services in Santa Rosa, California, to determine whether a BOP may meet your organization's needs and learn whether you are eligible to purchase this type of policy.
business owner standing outside cafe

What Is Included With a BOP?
While a prepackaged BOP may not provide enough coverage to meet each of your company's needs, it can offer discounts you may not get if you purchase each policy separately. Plus, you can tailor your BOP riders and endorsements to provide the coverage most needed by your organization.

BOP insurance typically provides three types of coverage, including:

Liability Insurance
This policy helps pay claims if your company is legally liable for third-party property damage or injury claims. For example, if someone is hurt while visiting your business, this policy can help pay their medical bills. If someone alleges injury or property damage, your company's liability policy may provide coverage for legal defense costs. It can also help cover the cost of replacing or repairing someone else's property if an employee or company owner is at fault for damage caused in the course of day-to-day business.

Property Insurance
This policy helps pay to repair or replace company property if it's destroyed or damaged in a covered event, such as a storm, act of vandalism, theft or fire. Your landlord may require that you carry a minimum amount of commercial property insurance if you lease property. Businesses that maintain inventory, own equipment or manufacture products need property insurance to help protect their financial investment in their company's land, buildings, structures and possessions.

Business Interruption Insurance
This policy, also called business income insurance, helps provide financial support if a company must close after a covered event to allow for repairs. During this time, the business may be unable to generate revenue. Unfortunately, they may still have to pay regular bills. This coverage can help pay for everyday recurring expenses such as property rent, taxes and payroll.

How To Customize Your Company's BOP
Adding more coverage to your company's BOP can help your business handle the financial effects of common risks in your industry. A standard BOP may not provide enough coverage or coverage limits may be too low.

Your insurance agent can help you evaluate your BOP and add coverage to help tailor your company's insurance to better meet your needs. Your agent may recommend additional policies, including:

Cyber liability insurance, also called data breach insurance, helps pay for damages if your company is the victim of hackers or you are involved in a security breach.
Commercial auto insurance helps pay liability claims if you or your employee is at fault in an accident resulting in third-party injuries or property damage. Depending on your situation, you may also purchase comprehensive and collision coverage to help protect your company's vehicles.
Workers' compensation insurance may be required by your state, depending on how many employees you have, whether they are full-time or part-time and your industry. This coverage helps provide financial help to your employees if they become ill or are injured after a work-related accident or incident.
Commercial umbrella insurance acts as a safety net to help provide coverage if a liability claim exceeds the limits of your company's liability insurance policies.
Professional liability insurance, also called errors and omissions insurance, helps pay for legal costs if you or your employees make a mistake while providing professional services.

Contact Us Today
Contact RCU Insurance Services today to learn more about how a BOP tailored to meet your company's needs can help provide financial protection from common risks.

Learn more about business owners insurance.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.