Business Owner Policy

What is a Business Owner Policy (BOP)

Businesses often have a significant amount of property that they must protect and a number of liabilities that they are accountable for. A business owner insurance policy combines protection for major property assets and liability risks, bundling them into a single package. If you are a business owner that needs protection from unexpected costs, a business owner policy may be a good fit for you. 

What do business owner policies protect? 

Business owner policies have two primary functions; to protect business property and cover unexpected expenses that arise due to liability risks. 

Property Insurance

The property insurance component of a business owner policy often revolves around named-peril coverage. This type of coverage insures against damage that is caused by specific circumstances expressly listed in the insurance policy. In some instances, you can also retain an all-risk or open-peril policy, which insures you comprehensively against property damage. These more in-depth policy options are also available through special business owner policy forms, rather than the standard version. 

The types of property insured under a BOP generally includes any buildings that the policyholder owns or rents, as well as any additions or outdoor fixtures added to those properties. The policy can also be structured to include business-owned assets or other assets that are temporarily in custody or control of the business. In order for such assets to qualify for coverage, they usually must be kept near the business premises. 

Liability Insurance

When a business inflicts damages upon an individual, they often are required to provide some level of compensation for their involvement in the situation. If a business is at risk of damaging others through the normal business operations of their firm, the liability protection component of a BOP plan can be invoked to pay the associated costs. Examples of when liability insurance may come into play would be if business activities cause bodily injury to a person, or property damage occurs due to use of a defective product created by the business. 

How to get a BOP policy

Your business must meet strict requirements to qualify for a business owner’s policy. Although policy requirements are different depending on the company you seek your insurance from, you can expect them to consider factors such as your business location, the size of the business property, how much revenue the business generates, and category of business your firm falls under. The most common business types to qualify for BOPs are retail businesses, businesses that operate out of an office space, and small restaurants. 

Are you looking for a business owner policy?

If you are searching for a business owner policy, or would like to know if your business qualifies for a BOP, reach out to Acropolis Insurance. Our knowledgeable team can answer your insurance questions now and point you in the direction of a policy that fits your specific needs.