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BOP for Small Business Owners

By: Hometown Insurance

Web site: Travelers

What is a Business Owner’s Policy (BOP insurance)?

If you own a small business, a Business Owner’s Policy, or BOP, protects you from liability claims and lawsuits; safeguards your buildings, equipment and inventory; and covers you financially if your business unexpectedly shuts down from a covered loss.

What Does a BOP Cover?

A business owner’s policy (BOP) combines two types of coverages to protect your small business against a variety of claims. Its coverage components include:

    • Commercial general liability insurance

    • Commercial property insurance, often including business income and extra expense (BIEE)

The general liability portion of a BOP safeguards your business in the event someone makes a claim against you or your business. General liability insurance provides protection from liability lawsuits resulting from things like a customer slipping on a wet floor, a defective product causing damage to a client’s property, or claims that the products or services you provided caused injury. It can also protect you from libel, slander and certain legal claims related to advertising.

The property portion of a BOP helps protect business property you own, lease or rent, including your buildings, equipment, furniture and inventory. It helps cover repair or replacement costs of stolen, damaged or destroyed property, including property that isn’t yours but was in your care. It can also cover loss of income and covered expenses like rent, payroll and other financial responsibilities while your property is being repaired or replaced after a fire or other covered loss.

A BOP builds in many specialized coverages that can be tailored to the unique risks facing your business. Plus, it offers a wide variety of optional coverages that can offer additional protection. For example:

    • Hired and Non Owned Auto – covers your business on those occasions when you rent, lease or borrow a vehicle on a short term basis, or when your employees use their personal vehicles for company business.

    • Cyber Liability, Including Data Breach – protects your business against the costs of data breaches and other cyber security issues.

    • Crime – protects against the costs of theft of money and securities.

    • Contractor’s Equipment – helps pay for repair or replacement of tools and equipment if they are lost, stolen, or damaged.

Material excerpted from: What is a Business Owner’s Policy? (BOP Insurance)?

Call Hometown Insurance Agency to speak with a trusted advisor about your business insurance at 631-589-0100 or contact us by email at for helpful information.

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