The Basics of a Business Owner’s Policy (BOP)

BOP

Knowing the basics of a business owner’s policy can give you a better understanding of the premium you are paying for your business or home. But what is a business owner’s policy (BOP) exactly? Simply put, a BOP is a combination of liability and property insurance that enables you to pay only one premium instead of paying for each insurance policy individually.

Benefits of a Business Owner’s Policy

The BOP is an insurance package that’s beneficial because the premium of a BOP is less than if you were to buy the insurance policies individually. Depending on the business, a BOP can be arranged to include additional protection for specific risks as well as exclude certain coverages that may not be needed. Contact H&K Insurance today to see what coverage would be best for you.

Some of the Coverages Included in a BOP

Standard BOPs have multiple insurance coverages which may include the following:

  • General Liability Insurance: This coverage is meant to protect you if you cause harm to property or another person due to negligence. General liability insurance also covers instances such as slander, false arrest, and false advertising.

 

  • Data Breach Coverage: Data breach coverage is vital for any business that carries sensitive and personal information such as restaurants. Refer to our blog on data breach coverage to learn more on why you should consider this coverage in your BOP.

 

  • Business Property Insurance: This insurance covers any property your business owns or leases such as office furniture, inventory, and equipment.

 

  • Employee Dishonesty: Unfortunately, employees are the most likely to commit thefts with any business. This insurance covers any losses, up to the limit purchased, of money or revenue caused by an employee.

 

  • Employment Practice’s Liability: EPLI insurance protects employers against claims made by potential, current, and ex-employees alleging sexual harassment, discrimination, wrongful termination, and other offenses.

While business owner policies vary depending on different needs for a business, these are just a few of the policies that your business may want to consider adding to your BOP. Overall, business owner’s policies are a convenient and an effective way for any size business to be protected.

Importance of Inventory with a BOP

Once you have researched and found the BOP that works best for your business, another important factor to consider is inventory. Whether you’re a home-based business or large corporation, keeping inventory will help an insurance claim process much faster by verifying potential losses more accurately. Making a list of business property, saving receipts, purchase contracts, and appraisals will help you more quickly file and get your claim processed.

We at H&K Insurance hope you learned more about business owner’s policies and that you found this blog helpful to you. Visit our website to learn more about the business owner’s policy. With over 50 years of experience, there is no one more qualified or easy to work with than us. If you would like to learn more about business owner’s policies or other insurance policies, contact us today.