Business owner’s policy (BOP)

Business owner’s insurance that gets the job done

Most small business owners need more than one insurance policy. Trouble is, working out exactly what coverage you need takes time. And when you’re buying the policies separately, the cost can seriously add up.

The good news is you could buy a business owner’s policy (or BOP) instead. It comes with general liability and property insurance as standard.

Plus, a choice of optional add-ons designed with small business owners in mind. Like office insurance that covers business interruption, liability insurance for non-owned vehicles, and business equipment for your office essentials.

Not only can you customize a BOP to suit your business, it usually works out cheaper than buying the policies separately. And, because it acts as one policy, it’s easier to manage too.

Why waste time and money when a BOP can save you both?

• What is not covered by a BOP?

  A business owner’s policy won’t protect you from every risk your business faces. There are a few things a BOP doesn’t cover that you should consider:

  • Use of vehicles and boats
    A BOP won’t cover any claims that arise from the ownership or use of an automobile or watercraft.
  • Personally identifiable information
    You won’t be covered if you fail to protect personally identifiable information that is in your care, custody, or control. Cyber liability insurance is a great option if you need to cover this kind of data.
  • Client damages
    Providing inaccurate or incomplete advice to a client isn’t covered by BOP. Professional liability insurance – also known as errors & omissions – is the best way to get cover for these kind of problems.
  • Professional services
    A BOP policy doesn’t cover any of the professional services you perform. Similar to client damages, you should consider professional liability insurance to get coverage for your professional services.

• Are there any extras I can add to a BOP?

  Yes. There are several extras you can add on to your business owner’s policy, such as:

  • Office insurance covers the structure, indoor fixtures, and flooring of your business’ property against risks like fire, lightning, explosion, windstorms, hail, smoke, and vandalism. You’ll also be covered for any losses and extra expenses you might suffer as a result of damage to your property.
  • Electronic data loss insurance covers you for lost or damaged electronic data. And any associated business interruptions that might be caused by data loss.
  • Non-owned vehicle liability insurance covers you if a personal vehicle is used by an employee for business purposes, whether it’s owned or rented by them. It covers the costs of third-party property damage and bodily injury as a result of an accident.
  • Commercial crime insurance protects you from the costs associated with employee dishonesty, funds transfer fraud, forgery, theft of client’s property, and more.

• Who can get a business owner’s policy?

  In short, anyone who owns or rents an office space can get a business owner’s policy.

• How much does a business owner’s policy cost?

  Although it usually works out cheaper than buying each policy separately, the cost of a BOP varies from business to business.

  The amount you’ll pay will depend on:

  • Where your business is based
  • The size of your business
  • Which industry you’re in
  • What services you offer
  • The coverage limits you select
  • Your deductible (the amount you’ll contribute if there’s a claim)

• How to save money on your business owner’s policy

  • Choosing to pay a higher deductible (the amount you contribute to the cost of a claim) will reduce the price of your policy. Just be sure you can afford to pay this amount if there’s a claim.
  • Buy more than one policy from this insurer and you’ll get up to 5% off the price. A BOP doesn’t include professional liability insurance, for example. So if that’s a policy you need, buy it along with your BOP to save yourself some cash.
  • Do you run your business from home? If so, you’ll pay less for your BOP. Home-based businesses can save up to 10% on the price of a policy.

• Who needs a BOP?

  You’ll find more on who needs a business owner’s policy on our blog.

  But as a general rule, you should think about protecting your business with a BOP if:

  • You run your business from property you own or rent
  • You have expensive tools or equipment you regularly take out of your office
  • You visit with clients or they come to you