Business Owner's Policy Insurance

Business owners policies are a form of commercial insurance that combine several coverages into a single, convenient insurance policy. Most business owners policies are underwritten to meet the insurance needs of small and medium businesses.

When compared to getting each coverage individually, purchasing several coverages through a BOP has two main advantages. First, combining several coverages into a single package policy makes it easier to manage premium payments. Second, most insurers offer steep discounts on their package policies. By getting multiple coverages together through a BOP, businesses can often save a lot on their insurance payments.

The exact coverages that a business owners policy offers can vary. In general, however, BOPs have three main protections: General Liability Insurance, which normally provides broad coverage against common liability claims; Commercial Property Insurance, which might cover property a business owns from fire, theft, and similar perils; and Business Interruption Insurance, which may offer financial assistance if a covered disaster forces a business to shut down temporarily. An increasing number of BOPs also offer cyber liability insurance, which is often used to protect against online threats and data breaches.

A few business owners policies might include other coverages, but these BOPs are the exception rather than the rule. In general, BOPs don’t offer many other protections. They’re intended to offer protection from some of the most common risks that businesses face. Therefore, BOPs usually have only basic coverages that are widely needed.

Some businesses need liability certificates in order to prove that they have sufficient liability coverage. As long as a BOP includes liability coverage (which the vast majority do), a business can usually get a liability certificate. The certificate will clearly state how much liability coverage the business has.