The basics

What is a business owner’s policy?

A business owner’s policy combines property, liability, and business interruption coverages into one nifty bundle. Think of it as a package that includes the most necessary coverages that pretty much all businesses should have. It’s also a good way to save money, because the price is usually less than the cost of each coverage separately.

Who needs a business owner’s policy?

BOP insurance is great for small-to-medium-sized businesses whom insurance companies consider to be “low risk”, such as copywriters and video editors. If you’re looking for business insurance, this is a good place to start.

You should have a business owner’s policy if:

  • You have important business assets, such as equipment, furniture, inventory, cash, or customer data.
  • You have a physical location for your business, such as an office (rented or owned), a store, or even your home.

Example: If you run a seamstress business out of your home and a customer’s clothes are damaged in a fire there, a business owner’s policy covers that.

Of home-based businesses rely on their homeowners insurance to protect their work gear. However, those policies typically only cover up to $500 in business property damage.

The coverage

What does a business owner’s policy cover?

A BOP will help protect your business from claims and lawsuits that involve property damage, bodily injury, and personal/advertising injury that happen as a result of your business operations. It will also provide protection from fire, theft and other disasters. It may not help you if you need very specialized coverage (like an environmental business), so you’ll need expanded coverage (and we can help).

BOPs typically include:

  • General liability insurance: Coverage for harm or damage to a person or property, as well as defense costs for lawsuits, personal/advertising injury, libel and slander.
  • Business property insurance: Coverage for the property your business owns or rents, such as buildings, equipment, furniture, and inventory.
  • Business interruption insurance: Coverage for lost revenue resulting from property loss or a covered catastrophe (such as a fire) that disrupts your normal business operations.

Why get a business owner’s policy?

Well, you can save money, for starters. A BOP can make everything a little easier to keep track of, and it can save you money because the coverages are bundled together.

It’s also convenient to add additional coverages to a BOP for professional services, employees, and even vehicles. We’ll help you design a package to suit your needs.

Of all flood damage occurs in low to moderate flood risk areas.
Of businesses never reopen their doors after a flood disaster. They go under, literally.

The cost

How much does a business owner’s policy cost?

We work with the best of the best, and the baseline price for a BOP typically ranges from $250–$750.
BOPs are great for self-employed people, as they’re relatively inexpensive. And like we said, it’s a cheaper option than buying both general liability and business property policies separately.