A business owner’s insurance policy, also known as a business owner’s policy or BOP for short, is an excellent solution that covers the insurance needs of small business owners. In essence, a BOP is the combination or bundle of liability insurance, and commercial property insurance. Bops are easy and convenient, but perhaps the best part is that they cost less money then if the policies were purchased separately. So, does your small business need a business owner’s insurance policy?
If you work outside of your home, meaning you own or rent a workspace, then your business will benefit from a BOP. The bottom line is that small companies need both general liability and commercial property insurance policies when they either rent or own an office space or other commercial type of space. Your BOP protects you and your business from financial based losses that occur when customers have accidents at your place of work or are caused by your organization in some manner. In addition, incidents such as burglaries and fires are covered as well. BOP’s are actually best suited for small businesses with low risks.
If your organization can qualify for a BOP, you will both save money and gain a significant amount of insurance coverage. So, what exactly does a BOP cover? As stated above, a BOP covers both general liability and commercial property insurance. In essence, it provides both liability and property coverage for your small business. First and foremost, general liability insurance protects your small business against lawsuits from third parties who may sue you based on either property damage or bodily injury.
The general liability portion of the BOP also covers legal costs that are associated with advertising damages. That includes both copyright infringement and defamation claims. On the other hand, the commercial property insurance portion of the BOP covers either the repair or replacement of damaged, destroyed, or stolen property that’s owned by the business. This includes coverage of your commercial space if you happen to own it, equipment, inventory, and supplies.
Although any small business can greatly benefit from a business owner’s insurance policy, companies that have assets that are vulnerable to burglaries, fires, or other physical damage benefit the most. In addition, small businesses that lease commercial property, have a mortgage on commercial property or work with expensive property that’s owned by a client will usually be required to carry a commercial property insurance policy.
If you own a business in the Commonwealth of Massachusetts then you need to ensure that you have the proper insurance coverage in place. We can help you get the best deal on all of your personal and or business insurance needs. Please consult with a professional insurance agent that can answer your questions about all insurance related topics. It is important to fully understand exactly what you are buying when it comes to insurance policies.
If you have any questions, please call (508) 831-0133 to contact an associate at Zawada Insurance. We are happy to walk you through the details of your insurance policies and explain your coverage options. We look forward to helping you with all of your personal and or business-related insurance needs now and in the future.