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What is a Business Owner’s Policy?

Working with financial documents

Everything you own, whether it be your car, your boat, or your house probably has some type of insurance coverage, so why should your business be any different? In simple terms, a business owner’s policy (BOP) is a combination of all major property protections and liability risks in one large bundle.

Breaking Down a Business Owner Policy

If you’re a small-to-medium-sized business owner, then BOPs are mostly targeted toward you. This policy incorporates all of the basic coverages required by a business owner into one packaged deal. While specific coverages vary depending upon your insurer, most policies include the following:

Business Interruption Insurance. With business interruption insurance, your insurer will cover any lost income from a fire or other catastrophes that halts or disrupts business operations. This includes:

  • Profits
  • Fixed Costs
  • Temporary Location
  • Commision & Training Costs
  • Employee Wages
  • Taxes
  • Loan Payments

Property Insurance. Property insurance is usually available as named-peril coverage. This means that coverage will only be provided should something be damaged by events specifically listed in the policy. The properties that are covered by BOP typically include buildings (owned or rented) and any business-owned items or items owned by a third party that is kept temporarily in the care of the business or business owner.

Liability Protection. With liability insurance, your insurer will cover the legal responsibility for damages that are inflicted onto others. However, the damage has to have been a result of something done during the normal course of business operations, such as defective products or faulty installations.

Additional BOP Coverage

Depending on what industry you’re in and where your business is located, you may also want to include other coverages such as crime insurance, flood insurance, or vehicle coverage. As with any type of additional insurance coverage, some of these might include contingencies on the specifics of the event.

At Snellings Walters, we understand that every business is different. We’ll work with you to create a policy with coverages that meet your unique circumstances. You can get in touch with us here, or call us at 770-637-1726.