A business owners policy (BOP) is a great way for small businesses to save money on important coverages. It combines property coverage and general liability into one affordable policy, but these coverages don’t include every danger that may face your business.

What Does a BOP Cover?

A standard BOP covers:

• General Liability: General liability insurance provides compensation if a third party suffers from bodily injury or property damage on the business property. It can help with payments for medical expenses and possible legal fees.
• Property Damage: Property damage offers compensation if your business’ property and its contents are damaged due to fire, lightning, smoke, theft, vandalism and more.
• Business Interruption Insurance: Some accidents or environmental emergencies make it impossible for the business to operate. In this case, business interruption insurance provides compensation for income lost during the time the business is inoperable. It may also help with the cost of temporarily moving the operation elsewhere.

Generally, BOPs are suited for small businesses in low-risk industries, such as restaurants, retail stores, wholesalers, offices and apartment buildings.

A BOP is somewhat flexible with the coverage it can offer. You can tailor a BOP for your business depending on your specific needs. Optional coverages you can add include:

• Professional Liability: While general liability covers non-professional negligent acts, professional liability covers professional negligent acts. This insurance provides coverage if a claim is filed due to an act of professional negligence that results in monetary loss for their client. This insurance is important for lawyers, medical professionals, accountants, financial advisers and more.
• Data Breach Coverage: If a data breach occurs, data breach insurance can help cover the cost of hiring a public relations consultant, legal fees that arise from claims due to the breach, and extortion payments.
• Crime Coverage: Most insurance excludes criminal acts, so crime insurance provides coverage if an employee or partner steals money from the company.
• Cyber Liability: Cyber liability helps in instances where personal client information is lost or stolen due to a cyber attack or other incident. This insurance is crucial for a lot of businesses, since most information is held online now.
• Inland Marine Insurance: A commercial auto insurance policy won’t always cover expensive equipment while it’s being transported. Inland marine insurance provides coverage for loss or damage that occurs to equipment in transit.
• Umbrella Insurance: This insurance covers gaps left over by your other liability insurance policies.