Business Owners Policy (BOP) Insurance Information
A business owners policy (BOP) combines several essential insurance policies at a discount for qualifying small businesses. A BOP typically includes commercial property insurance and general liability insurance and can be tailored to meet the needs of a business.
In general, BOPs may work well for companies with less than $5 million in yearly revenue and fewer than 100 employees. Insurance companies set the criteria for BOP eligibility, so talk with your agent to determine whether this coverage may be a good fit for your organization.
Contact Waymon Lunch Insurance Agency today to learn more about your options for small business insurance.
What Is a Business Owner Insurance Policy?
A business owners policy (BOP) helps provide coverage for risks such as liability claims, theft, fire and business interruption losses. A BOP typically includes:
- General liability insurance helps pay for a company’s legal liability due to third-party injury or property damage.
- Property insurance helps pay to repair or replace the insured company’s property after a covered incident.
- Business interruption insurance helps pay certain everyday bills if a company must shut down to allow for repairs after a covered event.
What Is the Difference Between a General Liability and Business Owners Policy?
A BOP typically covers third-party liability losses as well as losses to the company’s property. A general liability policy for a small business covers only third-party property and injury liability claims.
What Type of Insurance Is Not Covered by a Business Owners Policy?
A BOP policy provides limited protection that may meet the needs of some small businesses, but many organizations choose to customize their coverage to include additional insurance such as:
- Flood insurance
- Equipment breakdown insurance
- Employment practices liability insurance
- Employee practices liability
- Business vehicle insurance
- Cyber liability and cyber risk insurance
A BOP does not include workers’ compensation coverage, which is required for companies with more than one employee in Maryland and Washington D.C. In Georgia, businesses with three or more employees must purchase workers’ compensation insurance.
Umbrella insurance extends your company’s liability insurance. This coverage goes into effect when a liability claim exceeds the limits of your other liability insurance policies.
Learn More About BOPs
Contact the Waymon Lunch Insurance Agency serving Washington, D.C., Maryland and Georgia today to learn more about whether a BOP could be a good fit for your company.