A business owners policy (BOP) is designed to combine a variety of important coverage for small businesses in low risk industries. While these policies come with basic coverages, they are also flexible to allow business owners freedom to add and adjust insurance coverages tailored specifically for their business.

What Does a BOP Cover?

A basic BOP includes:

• General Liability Insurance: General liability insurance covers bodily injury, property damage and personal or advertising injury caused by the business’ typical daily operations. This includes damages, medical bills and lawsuits all related to an accident on the business’ property.
• Commercial Property Insurance: Commercial property insurance covers the physical location of the business and its contents in case of damage or loss due to fire, wind, hail, lightning, smoke, theft, vandalism and more.

Adding Coverages to Your BOP

As expressed before, BOPs are customizable. You may want to add liability for specific services your business provides or additional property insurance to cover the physical assets of your business. Every industry and business is different, so you should speak with your insurance agent about what kind of insurance your business needs for the most amount of protection.

Some common insurance coverages you may add to your BOP include:

• Professional Liability Insurance: Professional liability insurance covers claims against your business of professional negligence. If your business provides specialized or professional services, you may need this insurance to cover your professionals.
• Umbrella Liability Insurance: Umbrella liability insurance steps in to cover the gaps left by your other liability insurance policies, including professional liability and general liability insurance policies. If your liability insurance policy reaches its maximum for a single claim, for example, umbrella liability insurance can cover the remaining balance.
• Liquor Liability Insurance: Liquor liability insurance is specifically useful for businesses that make or sell alcohol. This insurance protects your business if a patron of your business causes bodily injury or property damage to someone else after drinking your product or at your establishment.
• Commercial Auto Insurance: Commercial auto insurance covers vehicles owned or used by your business for work purposes. This may include much of the same coverages as a personal auto insurance policy, such as comprehensive coverage, collision coverage, liability, medical payments coverage, uninsured/underinsured motorist and more.
• Workers Compensation Insurance: Workers compensation insurance covers your employees in case they are injured on the job. This can cover employee medical bills, wage replacement, disability benefits and more.

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