What’s a BOP and Do I Need One?

April 16, 2019

As a business owner, you need a lot of different types of insurance. There’s property insurance, liability insurance, auto insurance, business interruption insurance ... The list goes on. Sounds complicated, right? If you’ve ever wished there was a way to simplify insurance needs, you’re in luck. A Business Owners Policy, or BOP, combines multiple coverage types into one product.

A Policy for Small Business Owners

Insurance is an important part of any risk management strategy, and because there are lot of different types of risk, there are a lot of different types of insurance. This is especially true when you own a business.

If you’re a small business owner, you likely already have a number of insurance policies. Hearing about yet another important coverage type might be enough to give you a headache. A BOP is different, however. Instead of adding the types of policies you need, it reduces the policies you need by combining multiple coverage types. Just like that, your headache is gone.

What’s covered under a BOP?

BOPs are designed for small businesses. Coverage details tend to vary from insurance policy to insurance policy, and this is as true for BOPs as it is for other insurance types.

A typical BOP will cover property and liability insurance. These are both essential coverage types that protect your business common risks, so you can stay afloat even if things go wrong.

  • Property insurance covers damage to the building as well as the contents, such as damage caused by theft or fire.
  • Liability insurance covers damages to third parties, such as injury caused by a faulty product.

Some BOPs may include additional coverage types. There’s a lot of variation here, so you’ll need to talk to your insurance agent about finding a policy that fits your needs. Additional coverage types could include:

  • Business interruption insurance, in case a covered risk disrupts business operations
  • Commercial auto insurance, for vehicles used by the company and its employees
  • Cyber insurance, to cover data breaches and other cyber risks

How does a BOP help a small business owner?

A BOP simplifies insurance. By combining coverage types, business owners have an easier time getting the coverage they need – without having numerous bills to pay.

Speaking of bills, purchasing a BOP can be a great way to say money. Just as individuals can sometimes save money by bundling homeowners and auto insurance policies, business owners can also save money by purchasing a BOP instead of multiple individual policies.

A BOP is a great way to protect your company’s bottom dollar while managing your risks. Talk to your Heffernan Insurance broker about finding a BOP that’s right for you.