What is a Business Owners Policy?

A Business Owners Policy, often referred to as a “BOP,” provides both property damage and liability coverage specifically designed for smaller businesses.  These protections cover offices, apartments, mercantile, service and processing businesses.  Some qualifiers that determine a small or medium-sized business are the number of employees, annual gross sales or the square footage of a building.

What Coverages Do Business Owners Policies Provide?

As mentioned, there are two types of coverage offered by a Business Owners policy; Property Damage and Liability protection. 

  • Property Coverage, protects exposure to a building as well as business property. However, there are over a dozen of additional coverage options that can be added to the property section of the Business Owners policy.  The most common add on coverage types are Business Income/Business Interruption Coverage or Equipment Breakdown. 
  • Liability Coverage, is designed to cover expenses resulting from injury at a business or by using a business’ product or service. Coverage is also provided for product liability and medical payments among other protections included.

There are several endorsements that can be purchased to enhance a BOP policy, such as Spoilage, Utility Services, and Hired and Non-Hired Auto coverage among others.  There are also Umbrella and Excess Lines policies that can increase coverage of an underlying BOP policy.

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Do Business Owners Policies Provide Workers Compensation?

Workers Compensation insurance is not included in a Business Owners Policy.  Businesses that have employees are required to carry Workers Compensation which is purchased as a separate policy.  Our agents can help secure a Workers Compensation policy while assisting writing a BOP policy.

Are Commercial Package Policies and Business Owners Policies Different?

Both commercial package policies and business owners policies provide multiple protections for businesses, but the businesses they’re designed for are different. While BOPs usually provide a sampling of coverages for small businesses, CPPs offer a broader array of coverages that make them a good choice for businesses with more involved insurance needs. CPPs are often purchased by larger businesses and those that are exposed to less common risks.

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What Massachusetts Businesses Can Benefit from Getting a BOP?

Every small businesses in Massachusetts can benefit from the protections that a BOP policy provides. While there may be a few small businesses that only require one line of a Commercial policy, most businesses will require multiple coverage types and are better served by the packaged coverage of a BOP.  It’s also more affordable purchasing one policy with several lines of coverage, rather than purchase several lines of coverage separately.

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How Can Massachusetts Businesses Get a Business Owners Policy?

Business Owners Policies shouldn’t be underestimated just because they’re designed for smaller businesses. These are robust policies that offer a variety of important protections that can be enhanced with endorsements.  For help finding the best BOP to fit your business needs, agents can determine whether a BOP or Commercial Package Policy best suits your operations.  As an Independent Agency, our agents will have access to multiple quotes from multiple carriers, allowing your business to secure the optimal coverage at the lowest rate available

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