A Business Owner’s Insurance is mostly made up of two different insurance. these are the business property insurance and business liability insurance. A Business Owner’s Insurance or commonly known as BOP is going to help you protect your business against things included in your policy. This can be anywhere from fires to vandalism to certain natural disasters to even riots.
Business Property Insurance
Business property insurance is always included in a BOP. This is perhaps the most important part of the Business Owner’s Insurance. If you’re operating a business, not only it will protect the physical structure of the property but your belongings as well. This includes equipment, furniture, inventory, and even business documents.
Bodily Injury Liability
Generally, property insurance has liability coverage. For example, when you purchase a renter’s insurance which only protects your personal belongings, you get liability coverage. In case someone gets bodily injured in your property, you are most likely to be prone to deal with legal issues. The liability coverage takes all the worries of legal fees and medical bills.
Is BOP Worth It?
The easiest answer to this is—it depends. If you have a physical business location and want to protect your assets against fire, theft, vandalism or anything else that is covered on your policy, BOP is definitely going to be worth it.
Another reason a BOP may be worth it is if you have customers visiting your workplace. Since there is always a potential of customers hurting themselves and suing you, the liability coverage comes in handy. This can be such a worthy investment if you have a retail store, restaurant, consumer services, or any office.
Although a Business Owner’s Policy is going to be very useful for most small businesses, we recommend it the most to those with less than 100 employees and $5 million in sales.
Business Owner’s Policy Costs
The price you pay for the BOP is definitely worth it but how much is a business owner’s policy? Well, since there is a lot that goes into calculating it, giving an estimate is always hard with the business owner’s policies. On average, small businesses are expected to pay about $500 to $2,000 for it.
For $500, you are most likely to get coverage up to $1.5 million to $2 million worth of coverage (liability coverage included). Need additional information about the cost of the business owner’s policy costs? Read our property insurance price guidelines here.