Business Owner’s Policy

Business Owner’s Policy

Protect your small business

by Mike Compton

If you own a small business, a Business Owner’s Policy (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. It does so by combining two types of coverages to protect your small business against a variety of claims. Its coverage components include commercial general liability insurance and commercial property insurance, and often includes business income and extra expense.

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 can also build in many additional specialized coverages that can be tailored to the unique risks facing your business depending on what your specific needs may be.