What is a Business Owner Policy?

So you’re talking to your insurance broker about your small business and the broker says “oh yeah we’ll just BOP that.” BOP that? What’s that mean? Hi, I’m Jeff Gordon from Gordon Atlantic Insurance.

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BOP is an Insurance Policy for Business Owners

BOP actually is an acronym for a very simple policy called the business owner’s policy. It’s kind of like a homeowner’s policy for a small business.

Business Owner Policy

A BOP is the equivalent of a homeowner policy for a small business. 

Insurance For Your “Stuff”

Here’s what you get in a BOP: it’s a package. You get property coverage for your inventory in stock, office furniture, and all your property. Your “stuff” as George Carlin liked to say. It gives you liability insurance in case someone comes to your business and trips and falls, or they buy a product of yours and get sick or hurt.

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Insurance For Your Income, and Employees’ Income

Business Owner Policy

What if you can’t pay your employees’ wages because of an accident that affected your business? Your business owner policy should cover that!

Another thing that a business owner’s policy provides is lost business income. Let’s say there’s a fire at your business and you can’t reopen for another six to nine months. Business income actually pays the lost income because you can’t be in business.

Insurance for Expenses

You still want to pay your staff, however, You still need to pay the mortgage and you have other expenses to keep the business and to survive after a major accident like this. The business owner’s policy is a good, simple solution. It’s relatively robust.

Related: What Does Additional Insured Status Mean?

Other Types of Insurance May Be Needed

It doesn’t include everything. So have a further conversation with your broker about, perhaps, cyber liability or employment practices because these are not included in a business owner’s policy, but it’s a really good starting point. It’s simple, inexpensive, and easy to put in place.

Understanding Total Cost of Risk