BOP insurance helps cover your business against claims that result from things like fire, theft, or other covered disasters. Business owners insurance also helps cover claims that may arise from your company's operations. These include claims for bodily injury or property damage. General liability insurance is the first line of defense for a small business owner and is always included in a business owner's policy.
General liability insurance covers the cost of defending against claims for bodily injury, property damage, or personal injury. It can also be paid to cover medical claims. If you're a small business owner, a business owners policy (BOP) protects you from liability claims and lawsuits; protects your buildings, equipment, and inventory; and covers you financially if your business closes unexpectedly due to a covered loss. Business interruption insurance is a good idea for all businesses that have recurring expenses, such as payroll.
The BOP will also cover any item owned by the business or item that is owned by a third party but that is temporarily held in the care, custody, or control of the business or business owner. In general, the classes of businesses that qualify for BOPs include retail stores, apartment buildings, small restaurants, and office-based businesses. With business interruption insurance included in the BOP, the insurer covers the loss of income resulting from a fire or other catastrophe that disrupts the operation of the business. If you already have general liability insurance, property insurance, or other type of coverage from a specific insurer, it's a good idea to ask them if they offer a policy for business owners.
If your business can't generate revenue for a while, business interruption insurance will help you continue to meet your obligations. Insurance providers may have requirements regarding the location of the business, the size of the location, the revenue and the type of business. If your company has an office or a storefront or sells physical products, a policy for business owners may be a good option. The BOP for travelers includes many specialized coverages that can be adapted to the unique risks your company faces.
Business interruption insurance covers lost revenue when your business has to slow down or temporarily stop its operations after an act of vandalism, theft, or a covered disaster. NerdWallet recommends getting several commercial insurance quotes to find the one that best suits your business. State Farm offers some policyholders the option of including this coverage in a BOP, which could make it a good option for professional services companies. Commercial property should generally be stored or maintained close to qualifying commercial facilities (for example, 30 meters from the premises).
The general liability part of a BOP protects your company in the event that someone files a claim against you or your company. Business owner insurance generally includes property insurance, business interruption and liability insurance.