Business Owners Policy (BOP)

If you are an entrepreneur, which is of course an invaluable business virtue, you must have seen many investments collapse due to misfortune. From natural disasters to public liability, anything can happen and bring your business to its knees.

Capitalizing on Umbrella Protection

To avert this, the Insurance Information Institute (III) recommends investment in Business Owners Policy (BOP). Truth be told, small businesses are averse to insurance, considering it an unnecessary cost. However, this coverage protects your precious investment by lumping property and liability risk protection under one umbrella coverage. BOP includes the following aspects of coverage:

  1. Property insurance coverage: This is protection against risks for your business premise, equipment, business inventory and any other business assets.

  2. Loss of business income policy: When disaster strikes, you are forced to start from scratch and there is definitely a revenue constraint. Your policy will compensate loss of income due to disruption caused by a covered loss such as fire or floods.

  3. Business liability coverage: The U.S SBA rates this as the top coverage as it protects your business from potentially debilitating legal claims. Such coverage is crucial in case of liability involving defective products, injury and death on your premises, and such other accidents.


Customized Business Owners Policy (BOP) covers can also include data breach coverage, Employment Practices Liability Insurance (EPLI), rented vehicle coverage and equipment breakdown coverage. The bottom-line is that BOP is an indispensable part of your business that guarantees continuity.