The BOP in BOP Insurance stands for Business Owners' Policy. It's a combination of different types of business insurance policies that usually includes commercial general liability insurance.
What Does BOP Insurance Do?
BOP insurance is designed to create a nearly complete package of insurance coverage for smaller businesses. You can think of it like a homeowners insurance policy that protects your house and also adds in some personal liability coverage. BOP insurance covers both your business property and liability risks. Just like with a homeowners insurance policy, it's also often possible to bundle it with other coverages — such as commercial auto — for a package deal discount.
Why Isn't Commercial General Liability Insurance Enough?
Commercial general liability insurance only covers harm you to do others. That means things you can get sued for — such as injuring someone or damaging their property. Liability insurance doesn't provide you with coverage for acts of God or harm caused by others. For example, if your business burns down or someone steals your tools, you typically won't be covered by a liability policy. Most injuries to you or your workers also won't be covered — except possibly for injuries to workers caused by your negligence. Just like you buy auto insurance, homeowners insurance and health insurance for your personal life, you also need multiple types of insurance to fully protect your business.
What Doesn't BOP Insurance Cover?
BOP insurance policies often have multiple options for specific types of coverage and policy limits for each type of coverage. However, there are a few things that usually require a separate policy.
- Professional liability — such as doctor or lawyer malpractice.
- Auto insurance for accidents, damage to your vehicles, and property inside of your vehicles.
- Workers compensation for employee injury claims.
- Medical and disability coverage for you and your workers.
Many insurance providers offer several different types of coverage, but you need to make sure you're selecting the options and coverages that fully cover your business, rather than just assuming a single general policy covers everything.