Small business owners have a lot to consider when choosing insurance that fully protects their business. One coverage option, a business owners policy (BOP), can take the guesswork out of the process. A BOP is designed for small businesses and bundles several types of coverage in one package, similar to the way a homeowners policy works.

Premiums for BOP policies are based on eligibility factors, as well as financial stability, building construction, security features and fire hazards.

Typical BOP Coverages:

• Commercial property insurance—Covers losses to property from common perils. It also covers office equipment, furniture, inventory, machinery, raw materials, computers and anything else that is vital to business operations.
• General liability insurance—Covers a company’s legal responsibility for any harm it may cause to others, up to the policy limit. It also covers attorney fees and medical bills for anyone injured by the company.
• Business interruption insurance—Reimburses for loss of income if a covered disaster interferes with the successful operation of the business.

Typical BOP Exclusions:

• Workers Comp
• Professional Liability
• Auto
• Cyber
• Crime

While these coverages are excluded from most BOP’s, they can often be added for additional premium, or coverage can be acquired through a separate policy.

When purchasing business insurance, it is important to obtain the right amount. Contact Swarts, Manning & Associates for guidance as to whether a BOP is a logical choice for your business.