What is typically covered under BOP?
There are two main types of coverage that every BOP will include, regardless of where you buy it:
A business owner’s policy (BOP) is a simplified bundle of at least two essential business coverages. It’s designed for small businesses in certain low-risk industries (see more on who is a good candidate for a BOP is below). By combining several policies into one, some businesses can meet their primary insurance needs and save money, rather than buying each coverage individually.
Typically, a BOP bundles together key coverages like general liability, business income, and commercial property. Companies can also purchase add-on coverages to supplement a basic BOP. Notably, a BOP does not include workers’ compensation insurance or commercial auto coverage, but if a company will provide you with one, they may write these coverages as well and help you leverage policy bundling discounts!
Companies with higher and/or more complex risks should be on a tailored policy.
A BOP is also designed for businesses with less complexities. For example, a landscaper who only handles lawncare is a good candidate for a BOP. A landscaper who also builds outdoor buildings, plows snow in the winter, etc. may need coverage beyond a BOP.
There are two main types of coverage that every BOP will include, regardless of where you buy it:
NOTE: if you don’t qualify for a BOP, you can buy general liability insurance all by itself, or as part of a different type of commercial insurance package.Your BOP may also include business income insurance and extra expense, also known as business interruption insurance, which protects against financial losses when a business is unable to operate. Business income insurance covers lost revenue so a company can continue to pay their employees, mortgage, etc. Extra expense covers whether a business needs to rent a temporary building while the original property is being renovated or rebuilt.
Policies vary, but with a BOP alone, you will not receive coverage for:
There may be other noteworthy omissions, too, depending on your unique risk profile.
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Customizations will be different for every business, depending on where you work and what you do. Some common endorsements or add-ons to BOP coverage may include:
There are many other coverages you may need to consider, specific to your industry and your operation. Not all of them are available as endorsements to a BOP. (Worker’s comp and commercial auto, for example, are essential for most businesses.) Instead, you may need to purchase these add-ons separately, or bundle them into a different type of commercial insurance package.
No! Definitely not. This is an important point to keep in mind when browsing for business insurance — especially if you’re shopping for a BOP quote online. Many small business owners and startups are tempted to accept the first insurance quote they find. The problem is that business insurance requires expert advice, ideally from a local agent who insures other companies like yours, in your state.
Some BOPs, for example, will only cover “named perils” for property damage. That means if the type of loss event (fire, wind, vandalism, theft) isn’t specifically listed on your policy, your insurance company won’t cover it. Others — known as “all-risk” or “open-peril” BOPs — come with broader coverage terms. They cover all types of general liability and property claims except for those that are specifically excluded.
So, which type of BOP should you buy? An experienced agent is a great source of information, when it comes to combing through potential losses, deciding what’s important, and understanding how BOP insurance will or won’t respond.
We mentioned earlier that BOPs typically apply to small, low-risk businesses. Retail stores, barber shops, beauty parlors, fitness centers, churches, dry cleaners, and certain types of contractors: these are all potential candidates for a BOP.
On the other hand, businesses that routinely encounter more serious risks — bars or nightclubs, roofing companies, utility contractors, snow removal contractors, arborists, etc. — will likely need a more tailored commercial insurance package.
A BOP is typically more affordable than buying separate policies.
You have the ability to easily add additional coverages.
Insurance companies will usually consider offering business auto, umbrella, and workers’ compensation quotes to maximize multi-line premium discounts
The cost of BOP insurance is primarily a function of your company’s size, industry (i.e., how risky your work is), and prior loss history. Your desired coverage limits also play a role, as does the scope of your property. Companies with few employees and modest sales need less insurance and therefore pay less in premium. Likewise, companies with smaller footprints (small office, one computer) pay less than those with large, equipment-filled warehouses and multiple locations. Here’s a list of key factors that could impact your BOP premium:
We provide complete coverage for your BOP insurance needs so you can keep your mind on your business knowing you’re covered. You can speak with an agent about your coverage at any of the following locations:
A BOP is a simplified bundle of at least two essential business coverages designed for small businesses in certain low-risk industries, with specialized pricing over other liability and property polic…
Typically, a BOP bundles together key coverages like general liability and commercial property. Companies can also purchase add-on coverages to supplement a basic BOP.
Great question. The best way to find out is to contact a licensed, local agent — like the ones who make up our commercial lines team.
It depends on the type of risk and the type of company. Other factors that will affect the price include a company’s loss history, the size of the business, and how many buildings the company owns.
This refers to any property your company owns within your business, which can include stock, materials, ingredients, betterments and improvements, and property located outside and within a specified d…
General liability protects against third-party claims involving bodily injury and/or property damage that may occur on a job or business site.
If you own a business in Massachusetts, our team is the ideal partner for you. Here are just a few reasons why:
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