A business owner’s policy, or BOP, combines general liability insurance with commercial property insurance, typically at a lower rate than if the policies were purchased separately.
What is a Business Owner's Policy?
When do small businesses need a BOP?
All small businesses that want protection from unexpected financial losses should consider a business owner’s policy. Many companies only purchase general liability insurance, which does not protect business property. A BOP bundles general liability insurance with commercial property insurance for more complete coverage.
A business owner’s policy bundles two insurance policies at a discount:
1. General liability insurance
General liability insurance protects against common business risks, such as customer injury or damage to client property. It’s often required when signing a commercial lease or a client contract.
2. Commercial property insurance
Commercial property insurance protects your building, equipment, and inventory from damage or loss.
A BOP is ideal for a small business that wants protection against common lawsuits and coverage for valuable business property, such as a building or specialized equipment.
Business owner’s policy protections
|Home business||Freelancers||Small business|
|Liability_protection||You want to guard against business-related bodily injury and property damage lawsuits, such as a customer tripping at your home.||Clients may ask you to provide a certificate of insurance in case you damage equipment at their office.||You sign a commercial lease requires general liability insurance.|
|Advertising injury protection||You create a social media page for your business, which opens you to accusations of libel and copyright infringement.||You want reassurance that someone involved with a project cannot damage your business with an accusation of libel or slander.||You launch an advertising campaign and want protection against accusations of defamation or copyright infringement.|
Business owner’s policy eligibility requirements
Not all businesses are eligible for a business owner’s policy. Businesses that are eligible for a BOP typically have: