If you are new to owning a business, you are likely to come across a lot of terms and business jargon that is new to you. One of those terms might be business owner policy insurance or BOP. You might even look for a good BOP insurance definition.
In short, BOP insurance gathers the coverages needed by a business into one package. Similar to utility bundling, like cable, phone and Internet, BOP bundling provides a cost advantage over buying each coverage individually. More often than not, small business will take advantage of this benefit.
What BOP Coverage Gives You
What’s included in a typical BOP coverage policy? Most include property insurance, business interruption coverage and liability coverage.
Liability coverage protects your business if a customer hurts himself while on your property. It also protects you if you damage someone else’s property while on the job.
If damage, whether natural or man made, shuts down your business for a certain period, business interruption insurance protects your income loss. It could also cover any expenses necessary to work from a temporary location.
Property insurance protects your business assets if damaged by a specific event. Those events are listed in the coverage and usually include fire, vandalism, wind damage and so forth.
This is the standard BOP insurance definition, though every insurance company might have something a little different. Talk with an agent to find out more.