A business owner’s policy, or BOP, is a great insurance solution for small- to medium-sized businesses. Understanding commercial insurance means recognizing where a BOP fits and where standalone policies are still necessary. This type of policy is favored because it bundles the most common coverages into one policy, with one premium as opposed to paying for policies a la carte. This bundle is fully customizable and generally cheaper than buying individual policies. For owners wondering what it costs to insure a small business, a BOP is often the most economical starting point before adding specialized coverages.
Your business may be eligible if it employs no more than 100 individuals and earns no more than $1 million in annual revenue. This is also a popular choice for home-based business owners. Policies include property and liability coverage, along with your choice of the following options (with additional choices offered by some insurers):
- Property insurance: Covers physical property owned by the business such as buildings, furniture, equipment and inventory.
- Liability insurance: Covers third parties who suffer bodily injury or property damage while on your business’ property.
- Equipment breakdown insurance: Covers equipment, such as computers and phone systems, that fail or become damaged due to a covered incident.
- Data breach insurance: Covers digital resources, such as databases and customer records, from hackers, leaks, identify theft and other covered incidents.
- Loss of income insurance: Covers income that is lost due to a covered business interruption, including profits and expenses such as rent and payroll.
- Medical payments insurance: Covers third party medical expenses that result from a liability claim.
- Employment practices liability insurance: Covers your business’ liability expenses in the event that an employment-related claim is filed due to alleged acts of discrimination, harassment, wrongful termination, law violations etc.
Most BOPs will not include worker’s compensation or commercial auto coverage, which will need to be purchased separately if required.
Ask us about building your own BOP. Call I & E Insurance Agency at (732) 295-5584 for more information on business insurance.
