A business owner’s policy (BOP) is great for small businesses. The BOP bundles general liability insurance with commercial property insurance. When you purchase a BOP, you typically pay less than if the policies were bought individually.
If you own or rent a workspace, you likely need insurance and a business owner’s policy is likely he right choice.
Nearly all small businesses need general liability insurance to operate and commercial property insurance when they rent or own commercial real estate or other spaces. In fact, your client contracts will frequently require your business to carry general liability coverage.
What if coverage isn’t required? Well, a BOP is still a smart choice for the small business owner, especially if you work directly with the public and own property. This type of insurance protection provides coverage against financial losses from customer accidents and incidents like fires and burglaries.
A BOP may not be for everyone, it is specifically designed for low-risk small businesses. If your small business qualifies, the BOP provides great value and can help save money and gain coverage for the most common claims.
A business owner’s policy is a convenient bundle that includes both general liability insurance and commercial property insurance. Combined together, these coverages form the basis for the most needed coverage for your small business.
General liability insurance provides protection from the cost of lawsuits or money claims from people who sue your business over bodily injury or property damage. This coverage also provides for legal costs related to claims of advertising injuries, including defamation and copyright infringement.
In fact, if your small business leases commercial space, has a mortgage, or works with expensive client property are frequently required to carry this type of coverage by contract.
Commercial property insurance is an important coverage for business with property assets. This coverage pays for repair or replacement of damaged, destroyed, or stolen business property. Business property can be your commercial space (if owned by the business), supplies and equipment, as well as product inventory.
If your business has property considered vulnerable to fires, burglaries, and physical damage, then you will benefit from commercial property insurance.
Read more about business owner’s policy coverage.
The short answer is, probably – this is because not all types of businesses are eligible for a BOP. To qualify for a BOP and the bundle savings, businesses typically must have:
Read more about business owner’s policy eligibility.
Well, if your business owns property that is valuable to its operation, you should be considering a BOP. A business owner’s policy provides you important liability protection, but is also provides coverage for damage or loss of your building, equipment, and inventory.
If your business interacts frequently with the public, you will rely on a general liability protection to cover third-party lawsuits or money claims over bodily injuries and property damage. However, this insurance doesn’t provide coverage for fire, theft, and other incidents that damage or destroy your businesses property (including inventory).
What is great about a BOP, it offers both liability and property coverage at a lower cost than buying the policies individually. That makes a BOP a good choice for the small business owner.
Learn more about choosing between the two business insurance policies.
A BOP can legal defense during a lawsuit or pay for covered money claims for bodily injury or property damage for covered losses. It also provides coverage to repair or replacement damaged or lost property owned by the business.
Need examples? Below are some examples where home businesses, freelancers, and small businesses can benefit from BOP protection:
|HOME BUSINESS||FREELANCER||SMALL BUSINESS|
A delivery person trips on your uneven porch while delivering a package and makes a claim for the injuries.
Your client asks you to provide a certificate of liability insurance before allowing you to work on their valuable property or enter their offices.
This is the most common example, your commercial lease requires general liability insurance before you can take possession.
|Advertising Injury Protection|
A share information on social media that a competitor considers unflattering and sues your business for libel.
One of your websites images prompts a photographer to sue for copyright infringement over licensing.
A class-action lawsuit accuses your business of failing to protect your clients’ right to privacy.
|Business Personal Property|
A home fire destroys your business’s product inventory.
A criminal steals your computer.
Extreme weather damages your office building.
Proof of insurance can be provided in the form of a certificate. You can request proof of insurance online through your user account and can be provided same day. You will also get a certificate when you start a business owner’s policy through IronPoint.
We are agents, not brokers, and can issues certificates on behalf of our commercial partners. This is a bit different from brokers and some other traditional insurance agencies, where delivery can take a few days. That’s an issue for business owners who need immediate proof of insurance to sign a pending contract.
With IronPoint, you can quickly provide proof for the lease or contract you’re planning to sign.
The cost of a BOP is based on a few different factors, including:
Generally, business owner’s policies for a smaller business can cost an average of $55 per month. This is based on the median cost of policies sold. There are many of our small business customers who pay more because of they industry or the size of their business.
You sure can. One of the great things about the business owner’s policies is that it is very flexible. Business owners can add additional coverages, or endorsements, to your policy to meet your specific needs. Each BOP also comes with what are called the “BOP Coverages” which are coverages with sub-limits that may already address your specific needs.
Here are some of the coverages you can either add or increase with the BOP you choose:
While not directly part of the BOP, business owners who run high-risk business can add a commercial umbrella insurance policy provide the business owner additional liability protection. Umbrella insurance extends your maximum general liability limits, meaning your insurance company can cover more expensive lawsuits.
If you own a business vehicle or have employees, these are two very important coverages you need to consider. In fact, you may be required to carry these coverages in most states:
To find out which endorsements and policies your small business needs, ask an insurance agent.
You provide us your information once and we’ll shop the
market for you. It’s fast, safe and secure.
Call 877-334-7646 to speak with a business specialist.
The amount of BOP coverage you need depends on factors such as the type and size of your business, number of employees, and the type of customers you typically work with. However, many small businesses opt for the standard $1 million / $2 million small business policy. This means the policy will pay up to $1 million to cover any one claim, with a $2 million limit for the lifetime of the policy, which is typically one year.
A BOP consists of general liability insurance and commercial property insurance. Neither policy is required by law. However, many of the people you do business with will likely have general liability insurance requirements. You may need this policy if you want to sign a client contract with these requirements. Proof of general liability coverage is also required to apply for certain professional licenses.
Additionally, many commercial landlords require tenants to purchase commercial property insurance. A landlord might ask to see proof of coverage before you can sign a lease.
The general liability portion of your BOP includes what’s known as advertising injury coverage. It provides protection for lawsuits related to libel, slander, and invasion of privacy, as well as copyright or brand infringement. That means if you are sued for writing something negative about a competitor on social media, you’re covered.
A business owner’s policy covers you and your employees, but typically does not include coverage for independent contractors. You can either add contractors to your policy on a temporary basis as an additional insured, or require them to purchase their own general liability insurance. When hiring a contractor, it is best to require them to provide you a certificate of liability insurance as evidence they have the property liability protections for you.
Our online application for a business owner’s policy takes just a few minutes to complete. In most cases, we’ll deliver quotes as directly after you finish the application. Once you purchase a policy, we can email you a certificate of insurance, which is the formal proof-of-insurance document you need to show when you sign certain contracts or apply for professional licenses.
The business owner’s policy application requires some basic information about your business, including where it’s located, number of employees, and estimated revenue for the upcoming year. Since it includes general liability, you’ll need the same application information as you would for general liability – along with information about your business property.
The application will take just a few minutes to complete. When you’re finished, you’ll receive quotes from multiple carriers. Look them over and pick the one that works best for you. A licensed insurance agent is available to assist you throughout the process.
We specialize in small business insurance for a large number of industries. Low-risk businesses with fewer than 100 employees are typically eligible for a BOP.
Our insurance agents have helped more than 125,000 businesses in segments including:
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