BOP Insurance

A BOP is a Business Owners Policy

A BOP policy is designed and tailored for specific classes of business. They are similar to a commercial insurance package policy in that both types of policies combine liability insurance with additional lines of coverage. The primary difference between the two types of coverage is a BOP is already pre-designed by the insurance company based on common needs of a business, while package polices are fully customized by the insured and their agent. BOP coverage is best suited for small business owners who do not have a need for a customized policy.

The real benefit of a BOP policy is that the insured gets a more well-rounded policy at a very affordable price, without having so spend a lot of time evaluating all of the available coverage options.

BOP’s Combine Liability Insurance with Other Lines of Coverage

The foundation of a BOP policy is either general liability, professional liability, or a combination of both products, depending on the type of business. The BOP policy then includes other lines of coverage commonly needed by similar types of business. Bop coverage will almost always include additional coverage for property insurance as well as automatically included coverage for lines such as a) business interruption, b) EPLI coverage, c) data breach, d) tools and equipment (inland marine coverage, and e) hired and non-owned auto.

BOP policies are specifically designed for target business owners and, therefore, a BOP policy would be different for an IT company than it would be for a florist, or a beauty salon. BOP polices are not available for every type of business and the included coverage will vary by insurance company.

A General Liability Shop BOP insurance policy combines several lines of coverage under a single policy.

A BOP Policy Combines Several Lines of Coverage Under a Single Policy:

✓ General Liability Insurance for third-party liability
✓ Property Insurance for Buildings and Personal
✓ Business Interruption and Extra Expense Coverage
✓ Additional Coverages for EPLI, Data Breach, and More

BOP policies include pre-established lines of coverage and only allow for minimal changes in the limits of insurance. For example, a small lawn and landscaping company may qualify for a BOP program with several insurance companies. The policy may automatically include coverage for tools and equipment at $5,000 and business interruption coverage at $15,000. The lawn care company will not be able to exclude these additional lines of coverage, but they will be able to increase coverage limits up to a certain limit of coverage. If the landscaping company has tools and equipment valued at $25,000, the policy can generally be endorsed to increase the insurance on tools and equipment to accommodate a higher limit of insurance.

When is a BOP Policy Better?

A BOP insurance policy is almost always the better deal for small business owners unless they have a unique set of circumstances that require higher limits or more specific lines of coverage. Over 90% of the time our agency compares a BOP policy to individual lines or package policies, the BOP is a better price than the alternatives. BOP’s are not well suited for larger companies or businesses with high exposure to liability claims. The maximum limits of coverage with BOP polices are generally not high enough to meet the needs of these types up companies. Commercial insurance packages are often a better insurance solution.

The competition among insurance carriers to create better and more affordable BOP programs continue to make BOP policies better and more affordable for select businesses. Over the past decade, BOP programs have expanded to include BOP products for more and more industries. Liability insurance companies have also added more freebie coverages and they’ve increased the availability of higher limits and coverage option. The prevalence of BOP insurance is likely to continue to increase over the next decade.
A BOP policy provides more coverage than a standard general liability policy.

Qualifying for BOP Insurance Coverage

Since BOP policies are highly targeted to select industries, not all businesses will qualify for this type of insurance coverage. And not all insurance companies offer BOP programs for the same target industries. However, it’s always a good idea to ask your agent if your business qualifies for a BOP program, and the determine if the coverage meets your business needs.

Today, more and more insurance companies are offering BOP insurance programs. A few short years ago, BOP polices were not available for any type of small contractors. Today, we’re offering BOP policies for dozens of different artisan contractors and construction businesses. Our agency constantly works with our top insurance companies to design and offer BOP solutions because they are more affordable and more robust than traditional methods of purchasing business insurance.

Get BOP Insurance Quotes

Find out if your business qualifies for one of our BOP programs and see how much money you can save. Get started now with our online quote form or contact one of our business insurance Specialists today.

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When to Avoid a BOP Policy

Even thought BOP coverage is often 15% – 25% less than traditional package policies, they’re not a fit for every business. Aside from those businesses that can’t qualify for a BOP program due to their industry, some businesses need higher limits and more sophisticated coverage than a BOP policy can provide. The following factors will generally help business owners determine if they are beyond the scope of a BOP policy:

Common Indicators Your Business is Too Big for a BOP:
Business is highly specialized or has high risk operations
You need insurance limits above $1 million
Business owns high dollar assets or has a large inventory
You want coverage options beyond the scope of a BOP policy
Business has payroll in excess of $1 million or over 100 employees