What Is a Business Owners Policy (BOP) & Do You Need One?

If you run a small business, protecting your assets and operations is critical. One insurance option you’ll often hear about is a Business Owners Policy (BOP). But what exactly is a BOP, and how do you know if it’s right for your business? In this post, we’ll break down what a BOP covers, how it works, and whether your business could benefit from one.

What Is a Business Owners Policy (BOP)?

A Business Owners Policy (BOP) is a bundled insurance package designed specifically for small to medium-sized businesses. It typically combines general liability insurance (which covers claims like property damage or bodily injury) and commercial property insurance (which protects your business’s physical assets like buildings, equipment, and inventory).

Think of it as a convenient, cost-effective way to cover multiple risks under a single policy rather than buying separate insurance policies for each risk.

For example: If your business suffers a fire that damages your equipment, a BOP can help cover the cost of repairs or replacement while also protecting against customer injury claims that might arise during the same period.

What Does a BOP Typically Cover?

A standard BOP usually includes:

1. General Liability Insurance – Protects against lawsuits for bodily injury, property damage, or advertising mistakes.

2. Commercial Property Insurance – Covers your business’s building, equipment, inventory, and furniture against events like fire, theft, or vandalism.

3. Business Interruption Insurance – Some BOPs include this to cover lost income if your business can’t operate due to a covered event.

Optional add-ons can include cyber liability, professional liability, and more, depending on your industry and risk exposure.

Do You Need a BOP?

A BOP is ideal for many small businesses, especially if:

• You own or lease a building for your business.

• You have employees or customers on-site.

• You want to streamline your insurance coverage and save on premiums.

However, not every business fits neatly into a BOP. For example, very large businesses or highly specialized industries may need customized insurance solutions beyond a standard BOP.

Final Thoughts

A Business Owners Policy can provide broad protection for many common business risks while keeping costs manageable. Ask yourself:

• Does my business have multiple areas of exposure that a bundled policy could cover?

• Would I benefit from the simplicity and potential cost savings of a BOP?

An insurance agent can help you evaluate your risks and determine if a BOP, or another type of policy, is the best fit for your business. Still unsure about your coverage options? Contact us today for a personalized review.

(207) 363-7894 | www.tapleyagency.com | 300 York St . PO Box 808 . York, Maine 03909