Is a Business Owner Policy (BOP) Insurance Right for Your Business?

cafe shop owner smiling with tablet

What if your business was in danger of imploding any minute now? 

This is a constantly-running nightmare for most business owners. However, if you’re running a business without BOP insurance, then that nightmare could soon become a reality. 

A Business Owner Policy is a great fit for some businesses, but it’s not right for everyone. How, then, can you determine if BOP insurance is right for your own business? Keep reading to discover the answers! 

What Is a Business Owner Policy? 

Business Owner Policy (or BOP) insurance provides a combination of commercial property insurance and liability protection. This helps to protect your company against various claims and generally protect your business from unknown future threats. 

BOP insurance is very customizable. In many cases, you can speak to your insurance carrier about adding special coverages. For example, if your business processes lots of sensitive data, you may want to add data breach coverage to your existing BOP policy. 

With that in mind, not every business needs BOP insurance. Let’s take a closer look at who needs this insurance and who does not. 

How Much Does BOP Cost? 

The average cost of BOP insurance runs between $500 and $2,000 annually. Obviously, a lot of different factors go into how much BOP will cost you – but it depends on how much coverage you want, plus if your policy contains more than just liability and property insurance. 

Different businesses demand more or less coverage. A fireworks factory, for example, will most likely need a lot more BOP (and other protections) than a deli. 

Who Needs BOP Insurance? 

If your business has a physical location, then you likely need BOP insurance. Even if you don’t have a physical location, you need this insurance if it is easily possible to get sued. 

For example, a freelance writer likely doesn’t need BOP insurance. Such a writer does not work out of a physical location, and there is a minimal likelihood that he ends up getting sued. 

However, somebody who runs a local coffee shop would really benefit from BOP insurance. Because they work out of a physical location, they need the commercial protection offered by BOP insurance. And there is always a chance of customers or employees getting injured on-site, so the business owner needs the liability protection that comes with BOP insurance. Your own employees may be responsible for the injury. 

What Does BOP Insurance Cover? 

A business owner policy typically offers business property insurance and general liability insurance. Depending on your insurance carrier, you may be able to add additional coverages to your policy. 

Business property insurance is useful whether you rent or lease a business location. If anything is damaged or stolen, this insurance pays to repair or replace it. If something affects your income, BOP insurance can help protect your business against a loss of income. 

Business liability insurance helps to pay for medical bills if someone gets injured at your business. It also helps to provide for your legal fees in the event that someone gets injured and decides to sue you. 

smiling business owner standing in front of employees

BOP Insurance Benefits 

Now you know the basics about what BOP insurance covers. Are you still on the fence about whether these benefits will help your own business? 

To help you make a decision, we’re taking a closer look at the primary benefits this insurance has to offer you. 

1. Liability Protection 

Here’s the thing about liability protection. No business owner thinks they need it until they do! 

If somebody gets injured while at your business, they are free to sue you if they think it is your fault. As a business owner, this puts you in a terrible position. 

That’s because even if the court decides in your favor, the legal costs of defending yourself are enough to sink most small businesses. With BOP insurance, your legal fees are covered. The insurance also helps to cover the medical bills of the injured party, which is often enough to keep a lawsuit from going forward. 

2. Property Protection 

If your business has a physical location, BOP insurance is a must-have due to property protection. Simply put, this is the best way to protect your business from the unknown

You never know when your business will be robbed or vandalized. All it takes is a single fire to (quite literally) burn your business to the ground. With the right BOP insurance, though, you are protected from these scenarios and so much more! 

Get the Best BOP Insurance Today! 

Now you know whether or not BOP insurance is right for your business. But do you know where to find the policy your business deserves? 

We’re here to take care of all your business insurance needs. At InsureOne, we are always ready for you to get a quote online. Alternatively, you can pick up the phone and give us a quick call at 800-836-2240. Finally, feel free to come into one of our convenient nearby offices at your earliest convenience!