A Business Owners Policy, often called a BOP, combines both liability and property insurance into a cost-effective solution for small to medium sized businesses. You must have fewer than 100 employees and gross revenues under $1 million. in order to qualify.
Most BOPs have a section much like commercial general liability insurance, to protect a company against on-premise accidents and injury, or exposures to company products. That means your businesses is protected from payments for property damage or bodily injury to a third party, and for associated medical expenses or lawsuits. Professional liability insurance is not part of the BOP.
BOPs also include Business Interruption Insurance, to cover lost income and expenses during a disaster or other event which causes your business to shut down, such as a strike. Payroll expenses and on-going overhead expenses are covered in a BOP, usually for up to one year.
BOPs cover your building and its contents, including replacement if items are damaged by fire or other disaster, whether you own or rent. Sample covered items include:
- Important papers, records or data that have been lost or damaged
- Office furniture and fixtures
- Electronics including telephone systems, computers, networks, databases
- Heat and air conditioning units
- Refrigeration system
- Windows and building glass
- Inventory for manufacturers
- Cash or securities on premise
- Personal belongings at the business site
- Rental or leased equipment
An option you may want to consider is protection if an employee commits a fraudulent act that results in the loss of money or property.