If you’re a small or medium-sized business owner, you’ve likely heard of a Business Owners Policy—commonly referred to as a BOP. But what exactly does it cover, and how can it help protect your business?
At Ameriguard Insurance, we believe in helping our clients make informed decisions. Here’s a breakdown of what’s typically included in a Business Owners Policy and why it might be the right fit for your business.
What Is a Business Owners Policy?
A Business Owners Policy is a bundled insurance package designed for small to mid-sized businesses. A BOP can provide coverage for most small businesses, such as Restaurant Insurance, Retail Insurance, Office Insurance, Medical Office Insurance, Manufacturing, and so many more. It combines several essential coverages into one convenient and cost-effective policy. Rather than purchasing individual policies, a BOP brings together key protections under a single policy. An easy way to explain it is a packaged Property and Liability coverage.
What’s Covered in a Standard BOP?
While policies can be customized based on your industry and specific risks, most standard BOPs include the following core coverages:
1. Property Insurance
This covers the physical assets your business owns—such as buildings, office equipment, inventory, and furniture—if they are damaged or destroyed due to fire, theft, vandalism, or certain natural disasters.
Includes:
- Building coverage (if you own the building)
- Business personal property – this is the business property that stays at the business location.
- Equipment and inventory
- Loss of income from property-related incidents
2. General Liability Insurance
This protects your business if someone is injured on your property or if you’re held responsible for property damage or advertising injuries (such as slander or copyright infringement).
Covers:
- Slip-and-fall accidents
- Third-party property damage
- Legal defense costs
- Product liability claims
3. Business Interruption Insurance
Also called “Loss of Income” coverage, this part helps cover your operating expenses if your business has to temporarily close due to a covered loss, such as a fire or storm damage.
Helps Pay For:
- Lost revenue
- Rent or lease payments
- Payroll and ongoing expenses
- Temporary relocation costs
Optional Coverages You Can Add to a BOP
Depending on your industry, you may need to enhance your policy with additional protections. Some common endorsements include:
- Data Breach Coverage
- Professional Liability (Errors & Omissions)
- Equipment Breakdown
- Hired & Non-Owned Auto Liability
- Employment Practices Liability
Who Is a BOP Right For?
A Business Owners Policy is ideal for many types of businesses, including:
- Retail stores
- Offices
- Restaurants
- Contractors
- Service providers
- Medical and dental practices
- Manufactures
If you have a physical location, interact with customers, or handle inventory, a BOP can help protect the foundation of your business.
Final Thoughts
A Business Owners Policy offers broad protection at a competitive price, making it a smart foundation for your business insurance plan. However, not all businesses have the same risks, which is why it’s important to speak with an experienced insurance advisor.
At Ameriguard Insurance, we help business owners in Minnesota and beyond find tailored coverage that meets their specific needs. If you’re unsure whether a BOP is right for you—or what type of endorsements you might need—we’re here to help.
Contact us today to get a free quote or to review your current coverage. 763-767-0522