Business Owners Policy (BOP) Information
A business owners’ policy (BOP) can help reduce your company’s insurance costs while providing access to several basic coverages. Insurers set the rules for BOP qualification, so working closely with your agent is crucial to determine whether a BOP may suit your company’s situation.
Contact Simple Lane Insurance Agency today to learn more about your business insurance options.
What Is a Business Owners’ Policy (BOP)?
A business owners policy (BOP) is a type of insurance policy designed for small and medium-sized businesses that combines multiple types of coverage into one package. BOPs can be more affordable than purchasing each type of coverage separately, making them a popular option for businesses looking for broad insurance coverage at a reasonable cost.
What Is Covered Under a Business Owners’ Policy?
A business owners policy (BOP) typically includes several types of coverage, including the following:
- Property insurance is one of the main components of a BOP, covering physical assets such as buildings, equipment, and inventory from damage or loss due to theft, fire or other covered events.
- General liability insurance is also typically included, covering costs associated with claims that a business is responsible for third-party bodily injury, property damage, personal injury or advertising injury.
- Business interruption insurance is another crucial component, providing financial assistance to cover lost income and operating expenses if the business is forced to close temporarily due to a covered event.
Depending on your company’s needs, your agent may recommend that you further tailor a BOP to include other types of coverage, such as a tools and equipment endorsement or a cyber liability endorsement. Depending on your business and applicable state laws, you may also need to secure other policies, such as commercial auto insurance or workers’ compensation insurance.
How Much Is a Business Owners’ Policy?
An insurer typically considers numerous factors when determining a BOP premium, including the following:
- Type of business and its level of risk
- Coverage limits
- Location of the business
- Size of the business
- The company’s claims history
Not every business is qualified to purchase a BOP. Contact Simple Lane Insurance Agency
in El Cajon, California, to find out if a BOP may work for your company and get a personalized quote.