The Business Owners Policy (BOP) and How it Can Help Small Businesses

Are you looking for business insurance policies that combine protection for all major property and liability risks in one package? One package commonly purchased by small businesses is the Business Owners Policy (BOP). Package policies are created for businesses that generally face the same kind and degree of risk. 

Business Owners Insurance

The success of your business depends on your ability to meet the needs of your customers. This becomes more difficult when having to deal with unfortunate events that could interrupt your operations and impact your bottom line. That’s why having a portfolio of business insurance products tailored to your needs and reflective of your service industry is so important. You will want policies that reflect your size, type of business, location and other factors for the ideal insurance program.

Secure a Business Owners Policy (BOP) that combines Property and General Liability insurance before an unfortunate circumstance strikes. You may also add on additional coverages to this business insurance, such as Business Interruption and Equipment Breakdown, employee crime, money and securities, and specialty equipment. Special liability risks you face, such as food-borne illness, product recall, liquor liability, and others, will also be addressed. It all depends on your business sector and the specific exposures you face. 

Commercial Property Coverage

The property section of the standard BOP policy covers the following types of property:

  • Buildings located at premises described in the declarations, including machinery and equipment that is permanently installed
  • Business personal property located in covered buildings
  • Tenants improvements and betterments
  • Property that belongs to other people
  • Building glass owned by you or in your custody if you are a tenant

A BOP covers loss or damage by any peril that is not specifically listed in the exclusions section of the policy. 

Additional Coverages 

One advantage of a BOP is that it automatically includes a number of coverages generally included by an endorsement under a standard property policy. Most of these coverages are included at a relatively low limit. Two exceptions are business income and extra expense. No specific limits apply to these coverages. The policy covers a loss of income sustained and/or extra expenses incurred within 12 consecutive months after the date of the physical loss. These may include

  • Business Income Coverage
  • Extra Expense Coverage
  • Civil Authority Coverage
  • Valuable Papers
  • Accounts Receivable Coverage
  • Electronic Data
  • Newly Acquired Property
  • Interruption of Computer Operations
  • Fungi (Mold) Coverage

General Liability Coverage 

A BOP includes two third-party liability coverages: Bodily Injury and Property Damage Liability and Personal and Advertising Injury Liability, with coverages under a single insuring agreement. 

A BOP includes Medical Payments Coverage, which pays for medical expenses incurred by individuals who have been injured as a result of your business activities. Medical Payments Coverage makes payments to injured parties in the absence of a lawsuit. Speak to your business insurance agent for thorough details. 

About Transparity Insurance Services

Transparity Insurance Services was founded for the purpose of helping clients to ensure their property and assets with no hassle. We are committed to providing a simple, easy, efficient, and positive experience to all of our clients, and prioritize open and transparent communication with our clients. Through our excellent customer service and technology, we can help you to find the right insurance program at a competitive price. Contact us today at (855) 889-2037 to learn more about what we can do for you.