FRIDAY, JANUARY 29, 2021
 A BOP, also known as a business owners policy, works to combine useful coverages for small businesses in low risk industries. This type of policy can be adjusted and expanded to fit several coverages as needed by the business or business owner, but a basic BOP includes two main coverages:
General Liability
General liability insurance covers basic and common claims against the business concerning:
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Bodily Injury: Bodily injury under general liability helps cover expenses if a third party is injured on your business’ property. It can help with the injured party’s medical bills as well as protect your business from a related lawsuit.
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Property Damage: Property damage covers damage to third party property that may occur as a result of the business’ everyday activities.
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Personal and Advertising Injury: Personal and advertising injury covers claims regarding libel, slander, malicious persecution, copyright infringement, theft of an advertising idea and more.
Commercial Property Insurance
Commercial property insurance covers the physical assets of a business in case of damage or destruction caused by fire, wind, hail, lightning, smoke, explosions, theft, vandalism and more. This insurance can cover the physical location (such as an office building or restaurant) and its contents such as equipment, furniture and decorations.
Commercial property insurance may often include Business Interruption insurance, which helps cover lost income if the business is unable to operate fully due to a disaster or government mandate.
Purchasing these two coverages in a BOP can help save you money rather than purchasing each coverage separately, but these insurance policies are not necessarily all that you need.
You can add several types of coverages to your business in order to protect the unique dangers your company faces. This could include:
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Professional Liability: Professional liability insurance covers professional negligence that may cause a client to lose money. This insurance is also known as Errors and Omissions insurance (E&O insurance) and medical malpractice insurance.
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Umbrella Liability: Umbrella liability insurance fills in the gaps left by your other liability insurance policies. If your general liability policy reaches its limit for a claim, for example, umbrella liability insurance can help cover the remaining expenses.
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Directors and Officers Liability: Directors and officers insurance (D&O insurance) protects a business’ key employees in case of a claim regarding their activity as a director or officer. This includes claims of fraud, misrepresentation and more. This insurance often includes Employment Practices Liability (EPLI) which covers claims regarding discrimination, sexual harassment, wrongful firing or hiring, mismanagement of company benefits, etc.
Speak with an insurance agent about insuring your business with the right business owners policy.
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