What Is Included in a Business Owner’s Policy?
Running a business means balancing many responsibilities, including confirming you have the right insurance protection in place. A business owner’s policy (BOP) simplifies business insurance by bundling essential coverages into one convenient package. But what exactly is included in a BOP, and why is it such a valuable option for small and mid-sized businesses?
Core Coverages in a Business Owner’s Policy
A BOP combines several types of business insurance into a single policy, offering broad protection while making coverage easier to manage. The core components typically include the following coverages.
Property Insurance
This coverage protects your business’s physical assets, including buildings, equipment, furniture, and inventory. If your office is damaged by fire or your inventory is lost due to theft, property insurance helps cover the repair or replacement costs.
Business Liability Insurance
This coverage protects your company against claims of bodily injury or property damage caused to others. It also helps cover legal defense costs, settlements, or judgments. For example, if a customer slips and falls in your store, business liability insurance can help protect your finances.
Additional Coverage Options
Beyond the core protections, many BOPs offer add-ons or endorsements to fit specific business needs.
Business Interruption Insurance
If your business is forced to close temporarily due to a covered event, such as a fire or natural disaster, business interruption insurance can help replace lost income. It may also cover ongoing expenses, such as rent, payroll, or utilities.
Endorsements and Riders
A BOP can also be customized to include additional protections such as cyber liability, equipment breakdown, or crime coverage. These add-ons give small-business owners the flexibility to address risks unique to their operations.
Who Needs a Business Owner’s Policy?
BOPs are especially designed for small and mid-sized businesses. They are commonly used by:
- Retail shops that need coverage for customer injuries and damaged merchandise
- Offices that rely on equipment and client interactions
- Service-based companies that want protection against liability claims
The advantages are clear: BOPs are often more cost-efficient than purchasing separate business insurance policies. They simplify insurance management, and they can be customized to fit the needs of your industry. Oakwood Risk Insurance Solutions specializes in tailoring these policies to help business owners safeguard what they’ve worked hard to build.
Do You Need a BOP?
A BOP is a smart way to secure multiple types of protection in one package. By understanding what’s included and working with a trusted advisor, businesses can ensure they are covered against today’s most pressing risks.
Oakwood Risk provides the expertise and flexibility to help you build a business insurance policy that fits your needs. Contact us to learn how we can support your business with the right coverage strategy.
FAQ About BOPs
What is included in a business owner’s policy?
A BOP generally includes property insurance, business liability insurance, and the option to add business interruption coverage and endorsements.
Does a BOP cover professional liability?
No. Professional liability insurance, also called errors and omissions insurance, is usually purchased separately.
Is a BOP required by law?
No, but landlords and lenders may require certain coverages included in a BOP.
How does a BOP differ from general liability insurance?
General liability is one part of a BOP. A BOP expands coverage by adding property protection and other options.
Can a BOP be customized for my industry?
Yes. Endorsements allow you to tailor a BOP with coverages like cyber liability or equipment breakdown, making it adaptable to your business needs.
Does my business structure protect me from lawsuits?
Structuring as a limited liability company or a corporation can shield your personal assets from business liabilities, but that protection has limits. Business insurance is still necessary to cover risks that legal structures alone don’t address.
About Oakwood Risk Insurance Solutions
Oakwood Risk provides industry-leading insurance services, solutions, and counsel to our clients. Our professionals are valued for their ability to provide outstanding customer service, with a commitment to the relentless pursuit of value-added solutions, results, and comprehensive coverage.
