Business Owner’s Policy (BOP)
What separates a Business Owner’s Policy (BOP) from a General Liability Policy?
A business these days involves more than setting up a physical store, stuffing it with goods, and waiting for customers to walk in. Through the power of technology, businesses can grow exponentially in both scope and profit, thanks to the global reach of the internet.
Nevertheless, with greater ventures come greater risks and responsibilities, and businesses and organisations are increasingly putting some liability insurance in place. The Business Owner’s Policy and General Liability Policies offered by top leading companies at BizInsure are examples of such.
Despite some similarities, though, these two policies cover different liabilities. Distinguishing between the two is crucial, especially if one may be more critical for your business than the other.
Here are some details you’ll want to know about.
Is a Business Owner's Policy the same as General Liability?
When it comes to Business Owner’s Policy (BOP) and General Liability Policies, the key difference is their scope. Specifically, a General Liability policy covers only a limited set of circumstances, whereas a BOP typically includes coverage for situations that may fall under a General Liability policy as well.
Let’s take a closer look at the differences.
With General Liability policies, your business is protected against bodily injury claims, property damage claims, and advertising injury claims (for example, a product or service that caused or led to injury because of misrepresentation or false advertisements).
Meanwhile, a Business Owner’s Policy already includes General Liability insurance as well as Commercial Property insurance and Business Interruption insurance.
Some states or territories require policies like these before businesses can get their operating licences. In the same way, some customers prefer companies with insurance against these types of liabilities.
Contact us if you’re unsure about your compliance or want advice on which policy you need. Our support team will be more than happy to walk you through your options.
What does a Business Owner’s Policy cover?
Depending on your small business needs, Business Owner’s Policy (BOP) includes various coverage options.
A Business Owner’s Policy is ideal for small and medium-sized companies due to its range of coverage options and convenience to the business owner.
It is common for a BOP to include protection for the typical risks faced by small businesses, such as property damage, business interruptions, and liability.
Is a BOP necessary?
A Business Owner’s Policy (BOP) is often required when entering into contracts with customers, landlords and other third parties.
If you or your employees anticipate the need for General Liability insurance; own or lease business equipment; stock inventory, or operate a building at which you work and need to insure the property, then a BOP could be ideal for you.
Purchasing a Business Owner’s Policy saves you the time spent searching and comparing different insurance products. It’s a convenient way to get the security you need.
Without business or professional liability policies, you may be compelled to cover the legal expenses for claims against your business using your own private funds. You could also bankrupt your business if a serious enough claim is made against you.
Business Owner’s Policy insurance is typically for businesses with a physical store or that require employees or staff to work on-premises to deliver services or conduct business. As such, BOP insurance is becoming a standard policy among retail stores, restaurants or food services, groceries, rental properties, and warehousing facilities.
It’s also important to note that there are Business Owner’s Policy exclusions regarding some risks, such as Errors and Omissions liabilities. It also does not cover workers’ compensation or disability insurance for work accidents, nor does it cover general health insurance coverage for your employees.
With that in mind, a BizInsure Business Owner’s Policy can offer you reassurance and peace of mind. Should you be sued over one of these problems, your Business Owner’s Policy may cover your legal defence in whole or in part, as well as any settlements or court judgments within and up to the policy’s limits.
How much does a Business Owner’s Policy (BOP) cost?
- Your industry or trade
- Where your business is located or based
- How many employees you have on your payroll
- If you have outsourced staff or services
- Your property or business value
- Whether or not your business has been exposed to any claims before