Almost all small business owners require several types of insurance to address specific risks. Companies with relatively straightforward needs may be able to save money and time by combining their insurance needs under a business owner’s policy (BOP).
By providing a package approach to different forms of insurance coverage, a BOP can help business owners streamline their insurance needs by blending property and liability coverage in a single contract that may be less expensive than buying each policy on its own.
If your company has specific industry-related needs or other specialized risks, those exposures can often be included in a BOP without reducing some of the other benefits or complicating the coverage needlessly.
Despite their apparent advantages, BOPs, like many forms of insurance, aren't best-suited for everybody. BOPs are typically designed for companies such as small offices, retail stores, and some services firms.
The general liability portion of a BOP policy protects a small business against financial losses and defense costs if someone claims they were hurt on your premises by an employee in the course of their job duties or from using one of your products. Typical claims may include someone slipping in your store or falling down an icy stairway.
Commercial property insurance protects a small company's physical assets against loss or destruction. This may involve real estate, such as an office or store, as well as your company's equipment and any unsold inventory.
Depending on your industry and any specialized risks you may have, you can add additional lines of coverage to a business owner’s policy.
For small businesses with relatively simple risk management concerns, a business owner’s policy may provide a straightforward and cost-effective approach to arranging the appropriate insurance coverage.