What Is a Business Owner Policy?

 What Is a Business Owner Policy? What is a BOP? What does it include? Watch this video to learn more about the business owner policy and what it covers.


What is a Business Owner Policy?

So you’re talking to your insurance broker about your small business and the broker says “oh yeah we’ll just BOP that.” BOP that? What’s that mean? Hi, I’m Jeff Gordon from Gordon Atlantic Insurance.

Related: How to Convince Brokers to Insure Your Startup

BOP is an Insurance Policy for Business Owners

BOP actually is an acronym for a very simple policy called the business owner’s policy. It’s kind of like a homeowner’s policy for a small business.

Insurance For Your “Stuff”

Here’s what you get in a BOP: it’s a package. You get property coverage for your inventory in stock, office furniture, and all your property. Your “stuff” as George Carlin liked to say. It gives you liability insurance in case someone comes to your business and trips and falls, or they buy a product of yours and get sick or hurt.

Related: What Is Co-Insurance?

Insurance For Your Income, and Employees’ Income

Another thing that a business owner’s policy provides is lost business income. Let’s say there’s a fire at your business and you can’t reopen for another six to nine months. Business income actually pays the lost income because you can’t be in business.

Insurance for Expenses

You still want to pay your staff, however, You still need to pay the mortgage and you have other expenses to keep the business and to survive after a major accident like this. The business owner’s policy is a good, simple solution. It’s relatively robust.

Related: What Does Additional Insured Status Mean?

Other Types of Insurance May Be Needed

It doesn’t include everything. So have a further conversation with your broker about, perhaps, cyber liability or employment practices because these are not included in a business owner’s policy, but it’s a really good starting point. It’s simple, inexpensive, and easy to put in place.

Understanding Total Cost of Risk

About Geoff Gordon

Geoff Gordon has been the owner/president of the Gordon Atlantic Insurance agency since 1987. Gordon Atlantic Insurance provides commercial and personal insurance to businesses and families throughout Massachusetts.

A prolific writer and recognized industry thought leader, Geoff has contributed articles to Banker & Tradesman, a regional trade periodical, and served on the Quincy Patriot Ledger’s Board of Economic Advisors column. He is a member of the Plymouth Rock Assurance Agents Advisory Council as well as the Bunker Hill Insurance Agents Advisory Council. Geoff has presented to the Financial Planning Association’s (FPA) education series and teaches locally. Most recently Geoff spoke to a TEDx conference on “Personal Risk for a Rich Life” in February 2016.

Geoff obtained his Certified Financial Planner (CFP®) designation in 1985, the Certified Insurance Counselor (CIC) in 1995, and his Certified Risk Manager (CRM) designation in 2004, and serves as an Asssociate Faculty member of the Institute of Insurance Education and Reasearch, a national credentialling organization.