Each business can find themselves in unique situations specific to their operations and no single small business insurance policy covers all risks. Different types of commercial insurance address different risks that could impact a business, but a Business Owner’s Policy (BOP) is a great place to start.
What is a Business Owner’s Policy?
Business Owner’s Policy (BOP) bundles two key coverages, General Liability and Commercial Property, together under one convenient packaged policy. This a great choice for small businesses at it simplifies the insurance buying process and is one of the most cost-effective policies.
- General Liability Coverage is a must for any small business as it protects your business and employees by covering common business risks such as customer injuries like slip-and-fall accidents, customer property damage, and advertising injuries, such as libel and slander lawsuits.
- Commercial Property Coverage will protect your place of business and help replace and cover costs for building structure, equipment, furniture, and other physical assets inside in the event of theft or damage.
- Business Income or Business Interruption is an additional coverage that falls under your property coverage and helps cover loss of income your business may suffer from a covered loss that slows down or suspends your operations.
Tailor your Business Owner’s Policy with Other Coverages:
You can tailor your BOP to better meet your business’s unique needs by adding additional coverages such as:
- Data Breach/Cyber Liability: This type of coverage helps you in the response of any data breaches that may occur where personal or health information gets lost or stolen. Cyber Liability insurance helps to cover financial losses due to cyberattacks or other tech-related risks, as well as investigations or lawsuits following an attack.
- Equipment Breakdown: This kind of coverage is beneficial in helping to cover replacement and/or repair costs from damages caused by covered internal forces, such as power outages, electrical shorts, mechanical breakdowns, or operator error.
- Hired and Non-Owned Auto Liability: Many business owners use vehicles for their operations that they do not own themselves. If you are renting, leasing or borrowing a vehicle for business purposes, you will face risks on the road. This coverage can help cover property damage or bodily injury that your business caused to someone else in an accident while operating a hired or non-owned vehicle if you do not have a Commercial Auto policy.
- Hired auto coverage means your business will have coverage when you or your employees drive a rented, leased or borrowed car for the business.
- Non-owned auto will apply to your employees who are using their own vehicles for business. It provides extra coverage over the employee’s personal auto coverage for bodily injury and property damage liability.
Hired and non-owned auto insurance helps cover:
- Physical damage to another person’s car
- Bodily injuries and medical expenses if someone else gets hurt in an accident
- Legal expenses if your business gets sued for negligence
For more information about Business Owner’s Liability and it’s coverages, follow the link to our webpage: Learn more about BOP insurance here