Small Business Owners Need a BOP
The Businessowners Policy (BOP) was designed specifically for small business owners. It’s an all-in-one insurance package that combines property coverage, liability protection, and other essential safeguards to help your business stay secure.
Think of it as a simpler, smarter way to protect your business without the complexity of a full commercial package policy (CPP).
A BOP bundles essential protections into one affordable policy, including:
- Property Coverage: Protects your building, equipment, inventory, and other physical assets.
- Liability Coverage: Provides protection if your business is sued for bodily injury or property damage.
- Business Continuity Support: Optional coverages help your business recover if operations are interrupted.
Who Qualifies for a BOP
Now that you know what a BOP covers, you might be wondering if your business qualifies. Not every business is eligible, but many small businesses are. Each insurance carrier has its own risk appetite, so these are general guidelines:
- Fewer than 100 employees
- Annual revenue of $5–6 million or less
- Business space up to 35,000 square feet
Eligible businesses typically include retail stores, restaurants, offices, small manufacturers, and service providers. Even if your business doesn’t fit perfectly into these categories, it’s worth speaking with one of our agents to see if a BOP can meet your needs.
The Main Coverages in a BOP
A Businessowners Policy provides two main types of protection for small businesses: Property coverage and liability coverage.
Together, these coverages help safeguard your business from common risks, from physical damage to legal claims.
Property Coverage
Property coverage protects the physical assets of your business, including:
Coverage A – Buildings: This protects the physical structure of your business, including permanent fixtures, installed machinery, and materials used for repairs.
Coverage B – Business Personal Property: Protects business-owned items such as furniture, equipment, and inventory.
Most Businessowners Policies also include additional protections at no extra charge:
- Debris Removal – Covers costs to remove debris after a covered loss, such as fire or storm damage.
- Business Income – Reimburses lost income if a covered loss disrupts operations, up to 12 months.
- Extra Expense – Helps cover costs like temporary relocation after a loss, for up to 12 months.
Optional property coverages can be added for items like outdoor signs, money and securities, or employee dishonesty.
Liability Coverage
Liability coverage protects your business if someone is injured or their property is damaged because of your business operations. It can cover:
- Bodily Injury – Such as a customer slipping in your store.
- Property Damage – For accidental damage to someone else’s property.
- Personal and Advertising Injury – Covers issues like defamation or copyright infringement related to your business.
Liability coverage also includes Medical Expenses for injuries on your premises and Supplementary Payments to help with legal defense costs, bail bonds, or other reasonable expenses.
Who is Protected Under a BOP
Who is protected under a Businessowners Policy depends on the structure of the business. Generally:
- Individuals: Named insured and their spouse
- Partnerships: Named insured, partners, and their spouses
- LLCs: Named insured, members, and managers
- Corporations: Named insured, executive officers, and directors
Employees are also protected while acting within the scope of their employment, ensuring your team and leadership have coverage for business-related incidents.
BOP FAQs
Q: What businesses benefit from a BOP?
A: BOPs are ideal for small and medium-sized businesses like retailers, service providers, restaurants, and offices with fewer than 100 employees and under $6 million in revenue.
Q: Can I add commercial auto coverage to a BOP?
A: While BOPs do not include commercial auto insurance, you can add Hired Auto and Non-Owned Auto Liability to protect your business when employees use personal vehicles for work.
Q: Does a BOP cover flood or earthquake damage?
A: No, flood and earthquake coverage is excluded from a standard BOP. These can be purchased as separate policies.
Q: Is employee dishonesty covered?
A: You can add employee dishonesty coverage to protect against losses from theft or fraudulent activities by employees.
Q: How much does a BOP cost?
A: Costs vary depending on business size, industry, and coverage needs. Typically, a BOP is an affordable solution for small business insurance.
We are Here for You!
For small businesses in Miles City, Montana, a Businessowners Policy offers comprehensive coverage tailored to your unique needs.
From protecting your property and equipment to covering liability risks and business income loss, a BOP is the smart, cost-effective choice for businesses seeking simplicity and reliability in their insurance.