A business owners policy is one of the many types of insurance policies available for companies across industries. This policy is designed to bundle coverages into a single, affordable package specifically for small businesses.
At its most basic, a business owners policy (BOP) covers:
· General Liability: General liability insurance covers non-professional negligence that leads to bodily injury, property damage or personal and advertising injury. If someone is injured on your business’ property, general liability can help with the victim’s medical bills while also protecting your business from a lawsuit regarding the injury.
· Commercial Property Insurance: Commercial property insurance covers the physical assets of your business in case of damage due to fire, wind, hail, lightning, smoke, theft, vandalism and more.
Can You Add to a Business Owners Policy?
BOPs are relatively flexible when it comes to adding coverages and changing limits. In fact, many small businesses tailor BOPs to specifically fit their industry or business.
Depending on your industry, there are many types of liability coverages you may want to add. This includes:
· Professional Liability: Professional liability insurance covers professional negligence that may cause a client to lose money. This is one of the most frequently used liability insurances and is designed to cover industries and individuals that offer professional services.
· Umbrella Liability: Umbrella liability insurance fills in the gaps left by your other liability insurance policies. For example, if your professional liability insurance reaches its limits for a single claim, umbrella liability insurance will step in to cover the remaining expenses.
· Cyber Liability: Cyber liability insurance covers issues with information that is stored electronically. If your clients’ electronically stored information is breached, damaged or destroyed, cyber liability insurance can pay compensation.
· Directors and Officers Liability: Directors and Officers insurance (D&O insurance) covers your key employees in case of claims regarding their activities while working for your business.
· Employment Practices Liability: Employment practices liability (EPLI) is often added to a Directors and Officers insurance policy. This covers claims against your key employees and business concerning certain employment practices. It may cover claims concerning discrimination, wrongful firing or hiring, sexual harassment and more.
· Liquor Liability: Liquor liability insurance is useful for businesses that sells or manufactures alcohol. This insurance covers claims against the business in case a patron causes bodily injury or property damage to someone else after purchasing or drinking the offered alcohol.