The process of securing business insurance for your company can feel complex and overwhelming.
One coverage option, a business owners policy (BOP), can help take the guesswork out of the process.
Business Insurance: What is a Business Owners Policy?
A BOP bundles several types of coverage into one package, similar to the way your home insurance policy works.
It’s designed for small to midsize businesses and generally combines the following types of coverage in one policy:
- Commercial property insurance
- General liability insurance
- Business interruption insurance
What is covered under commercial property insurance?
Commercial property insurance covers losses to property from common perils. It also covers office equipment, furniture, inventory, machinery, raw materials, computers and anything else that is vital to business operations.
Read more about commercial property insurance here.
Read more about how commercial property insurance is rated here.
What is covered under general liability insurance?
General liability insurance covers your company’s legal responsibility for any harm you may cause to others, up to the policy limit. It also covers attorney fees and medical bills for anyone injured by your company.
Read more about general liability insurance here.
What is covered under business interruption insurance?
Business interruption insurance reimburses you for loss of income if a covered disaster interferes with the successful operation of the business.
Read more about business interruption insurance here.
While a BOP is a convenient way to secure business insurance, this coverage has exclusions to be aware of.
What is NOT Covered Under a Business Owners Policy?
A BOP is a standard business insurance policy that gives you basic insurance coverages. It’s important to be aware of what is NOT covered under a standard BOP.
Here’s a list of exclusions NOT covered under a business owners’ policy. These are additional coverage options to be aware of and to consider when purchasing business insurance in Ohio:
- Professional Liability Coverage
- Commercial Auto Coverage
- Workers’ Compensation
- Workers’ Life, Health, & Disability Coverage
- Crime Coverage
- Data Breach Coverage
- Errors and Omissions (E&O) Coverage
Is My Business an Ideal Candidate for a Business Owner’s Policy?
If your business has the following characteristics, you may be considered an ideal candidate for a BOP:
- Your business operates in a physical location, whether home-based or outside of the home
- Your business has assets that can be stolen, including products, cash, furniture and digital property
- Your business is at a high risk of lawsuits
- Your business employs less than 100 employees and has less than $5 million in sales
The following types of businesses frequently purchase BOPs to protect from losses not covered by general liability insurance:
- Manufacturers
- Religious Organizations
- Apartments
- Restaurants
- Technology consultants and solutions providers
- Wholesalers
- Retailers
Is My Business Eligible for a Business Owner’s Policy?
Small to midsize businesses need to meet specific criteria to be eligible for a BOP.
When determining eligibility, insurers consider factors that include the type of business, size of its primary location, class of business and revenue.
Premiums for BOP policies are based on eligibility factors, as well as financial stability, building construction, security features and fire hazards.
Conclusion
When purchasing business insurance in Ohio, it’s important to obtain the right amount of coverage for your business.
If you need help with your business insurance and would like to speak to an advisor, fill out this brief form and one of our licensed advisors will be in contact with you.
