Why a BOP May Be Right for Your Business

Have you heard of a home and auto insurance bundle? Well, a business owner’s policy, or BOP, is a similar policy bundle for small to medium businesses. BOPs provide the coverage that business owners need, wrapped up in a tidy bundle with a single premium price. It’s a great—and cheaper—alternative to buying individual types of policies a la carte. 

Can any business purchase a BOP? There are certain restrictions. For instance, an eligible business employs 100 or fewer employees and earns $1 million or less in annual profits. Whether you own a storefront, a restaurant or a home-based business, you can purchase a BOP as long as you meet the eligibility requirements. 

A BOP policy includes property and liability coverage, which are the two most common types of business insurance. Most plans are customizable (depending on your insurance provider), allowing you to select coverage additions which may include:  

• Medical payments: Covers any third party medical bills that arise from a liability claim.
• Equipment breakdown: Covers mechanical and electrical equipment that fails or becomes damaged following a covered incident.
• Loss of income: Covers lost income that results from a covered business interruption, including funds to pay fixed and variable expenses.
• Data breach: Covers digital assets from a variety of damages and losses. 

Employment practices liability: Covers a business’ liability expenses if an employee should claim wrongful termination, discrimination, harassment, law violations etc. 

If you are required to purchase worker’s compensation and commercial auto insurance, you will need to do so separately because these coverages are frequently excluded from BOPs. 

You keep your business running, we’ll keep it covered. Call Five County Insurance for more information on business insurance.