Click Here for a Business Owner’s Quote The business owner’s policy is commonly called a BOP.  Of all of the business insurance policies, the BOP might have the broadest coverage.  The business owner’s policy combines several property and liability policies into one policy.  Due to the packaging of coverages the premium is much less than if you were to purchase individual policies for each type of coverage.

The primary coverage parts are:

Building and Contents
Business Interruption
Employee Dishonesty
And General Liability

Generally the insurance company includes additional enhancements such as peak season, signs, newly acquired buildings, valuable papers, etc. to make the policy coverages even broader.

The design is to simplify the insurance process for small to mid-size business.   The disadvantages of the business owner’s policy are:   Not every business is the same.  As a result, the insurance needs vary between businesses.

For example: Business interruption coverage is insurance that pays for the loss of income and the incurred extra expense to get your business back to operating after a covered loss.  The loss of income insurance need for my insurance agency is different than a manufacturing business.

Likewise the extra expense insurance need differs.  Our point is the business interruption insurance portion of a business owner’s policy might not adequately serve the client.

Separate policies might be superior in coverage and protection. Many of the BOP’s enhancements have minimal limits.  Something is better than nothing, but on occasions the enhancement limits are inadequate.  Therefore the enhancement limits need to be reviewed. For some, the policy appears to be the only policy the business owner needs.

That is false.  In many cases, workers’ compensation, flood, business auto, equipment floater, etc. are necessary to adequately protect the business.   For most eligible businesses the business owner’s policy is a good fit.

The following are a few tips you might find helpful:   In many cases to increase your general liability coverage to $2,000,000 per occurrence is minimal.  Ask your agent what the cost would be. If you do not have a business auto policy and the insurance company has a hired & non-owned auto liability endorsement, add this endorsement. Be sure your coverages adequately comply with any lease or contract. Be sure the named insured, who is covered, is correct.