A business owner policy, or BOP, is a type of business insurance plan. It combines several of the most common types of coverage that companies need to maintain – all at an affordable, bundled rate.

As a business owner, speak to your agent about using a BOP, since it may help you to get the coverage you need for less.

Here are three major components of a basic BOP:

Property Coverage

This component provides protection for your business’ operating location. It protects the structure itself, and it may also protect possessions. Property coverage can help financially in the event of fire, theft, vandalism, and other damage to the property.

It’s critical that you choose enough coverage to ensure you can rebuild the property if it’s destroyed. Discuss any policy limitations with your agent as well. Some policies exclude acts of terrorism, acts of God, flooding and earthquakes. Adjust your policy to ensure it provides proper coverage for your local risk.

General Liability Insurance

This coverage applies when the business is negligent in some way against another person or company.

It provides coverage for any claims made against the company. It can also provide legal defense if your business is taken to court.

It may be possible to increase the amount of liability insurance you obtain to extend protection further. Speak to your business insurance agent to see whether this is needed for your business.

Interruption Coverage

If you cannot operate in your business for a length of time, interruption insurance can help. It applies to incidents that force you to relocate to a temporary location for weeks or months. For example, this option might cover your costs if you must move your business due to a fire. It can help pay your utilities and other debts while also covering the costs of operating offsite.

A BOP is fully customizable, so business owners can add or remove coverages to make their policy a better fit for their needs. For example, businesses can add commercial auto insurance, professional liability coverage and flood coverage. Speak to your business insurance agent about customizing a BOP to fit your business.

RCU Insurance Services is your source for business insurance in California. Contact us today to learn more about the policies we offer.