Business owners insurance, also known as BOP insurance, is a policy that combines both property and liability coverage into one package. It’s popular among a variety of small and medium-sized businesses such as restaurants, wholesalers, retail stores and contractors.
A business owners policy contains two primary coverages:
The liability coverages available on a BOP are the same as those on a general liability policy. This includes protection against liabilities like customer injury and property damage, advertising injury, and product related claims.
A BOP doesn’t cover your employees. You’ll need a separate workers’ compensation policy.
Provides coverage for commercial buildings and the movable property owned by and used for the business - referred to as business personal property. It can also pay for other things like debris removal, loss of income and pollution cleanup as part of a covered loss.
A BOP policy, like most other policies, has certain coverage exclusions that you should be aware of. If you need protection for something that isn’t covered, policy endorsements might be available to extend coverage.
For example, damage from earthquakes is typically excluded from a BOP. If you live in an area that’s prone to earthquakes, you might want to consider adding an endorsement to your policy to extend coverage. Ask about endorsement options when getting your quote.
In 2017, small businesses nationwide who bought a new BOP policy paid an average of $61 per month. While this gives you a general idea of what BOP insurance costs, it’s not necessarily what you’ll pay.
For instance, the price mentioned above is calculated using several different business types with varying levels of risk. Your final price will depend heavily on certain attributes of your business including coverage needs, type of profession, number of employees and claims history.
You might find that the cost of your BOP insurance is higher if you have a history of claims, high coverage requirements, or high exposure to risk, for example.
Getting a custom quote is a great way to find a rate that best matches your unique situation. Call us directly, or start a quote online.
Start protecting your business today
Our team of in-house specialists are experts at helping small business owners, like you, find BOP insurance coverage. They’ll help you get a quote with the best coverage for your specific business and budget.
Protect your business from liability claims
General liability insurance (GL), often referred to as business liability insurance, is coverage that can protect you from a variety of claims including bodily injury, property damage, personal injury and others that can arise from your business operations. General liability insurance quotes usually include:
Bodily injury and property damage liability
Personal and advertising injury
Products completed operations
Damage to premises rented to you
Who needs general liability insurance?
General liability insurance is often combined with property insurance in a Business Owners Policy (BOP), but it's also available to many contractors as a stand-alone coverage.
As a contractor or small business owner, you need some form of business liability insurance to safeguard your livelihood.
A single accident could result in a lawsuit that you might not be able to handle. A great way to protect against this is to make sure you have liability coverage that matches your level of exposure.
Some employers or clients might also require you to carry a certain amount of general liability before you can work for them.
General liability insurance for contractors
If you're a contractor, you might only want general liability - not a full BOP. For example, you might not own any commercial buildings that require property insurance, or need to cover payroll or other operating expenses. However, you're still exposed to liability risks from your job.
You might be eligible to get general liability insurance, without the extra coverages in a BOP, through the Progressive Advantage Business Program. We offer general liability, as well as Blanket Additional Insured Coverage to contractors who qualify.
Blanket Additional Insured Coverage extends your existing liability insurance to other entities as required by some contracts with employers.
General liability insurance cost
In 2017, the national average monthly cost for general liability insurance was $52. Remember, this is only an average and isn’t necessarily what you’ll pay. Your rate depends on the specific features of your business.
Get it all in a BOP
General liability, along with other coverages, is available in BOPs written through the Progressive Advantage Business Program.
If you need to protect things like personal property used for your business, or commercial buildings such as garages or storage facilities, you might require the additional protections provided in a BOP.
---- Page source & information retrieved from Progressive