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. Also referred to as a contractor’s package, this policy is also great for… well, you guessed it… contractors.

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, a business owner’s policy covers the losses.

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.

BOP Eligibility

BOPs are perfect for small businesses. According to the Chamber of Commerce, 99.9% of U.S.-based businesses are considered to be small businesses.  Examples include many types of small offices, retail stores, restaurants, bookkeepers, consultants, and law firms.
Because BOPs were designed for small businesses, you might not qualify if:

  • Your business earns more than $5 million annually
  • Your business premises is too large, such as a manufacturing plant or large warehouse
  • You have over 50 employees

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 that disrupts your normal business operations. If your business premises suffer damage because of a covered incident, like a fire, and you must relocate while the building is under repair, this supplements your loss of income, as well as any additional expenses that were incurred due to the event.

Optional BOP coverages:

An important benefit of BOPs is that you can add in specific coverages that you need. Here are a few common add-ins (also known as endorsements):

  • Equipment breakdown: Employees and customers both rely on things like heating and air conditioning to be comfortable at your business location. This coverage will help you repair or replace these types of systems if they shut down.
  • Outdoor signs: Many businesses invest a lot of money on a sign that represents their business. Signs can be damaged by things like windstorms, hail, or lightning. You can protect your signs with this coverage.
  • Employee dishonesty: Everyone expects to trust their employees, but sometimes things happen. If an employee steals from a customer, this coverage will reimburse the business for the amount needed to cover the loss.
  • Money and securities: If you’re a small business that collects cash each day, there is a chance it could be stolen. This endorsement will reimburse your business up to the covered amount in the event that your money gets stolen on or off the premises.
  • Tools & equipment: This handy coverage protects your work property while in transit and off your business location.

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?

The baseline price for a BOP typically hovers around $20/month, which is only $240/year! Check out our business owners policy cost analysis for a more detailed breakdown.

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.

We can save you money.

If you fill out a simple form, we’ll compare BOP insurance quotes to help you find the best option. No hidden fees and no obligations.

We work with top national insurance companies, and we’re dedicated to providing the best insurance rates to our customers.