A Business Owner Policy (BOP) combines coverage for all major insurance risks as well as additional coverages into one package policy. A business owners policy is suitable for most small businesses and can even include business income insurance. Business income insurance compensates you for the business income you may lose following a disaster. Disasters typically disrupt operations and may cause you to vacate your premises. A BOP also covers the moving expenses if you need to operate from temporary location.
There are many additional coverages you can add to a basic Business Owner Policy to cover specific risks associated with your business. For example, most BOPs doesn’t cover outdoor signs. In order to cover signs you need to specifically add coverage and pay an additional premium. If your business relies on electronic commerce, you may want to add additional coverage. E-commerce coverage would protect against lost income and extra expenses in the event your business is slowed down or stopped due to a computer virus or hacker. A BOP does not include all the coverages you may need. As a result, you will need separate policies for:
- professional liability
- auto insurance
- workers compensation or life
- health and disability insurance
Only small to medium-sized businesses that meet certain criteria are eligible for a BOP. Factors insurers consider when determining eligibility include:
- the size of the premises
- the required limits of liability
- the type of business
- the extent of offsite activity
Premiums for BOP policies are based on those factors plus:
- business location
- financial stability
- building construction
- security features
- fire hazards.
Cryptosure is the only company offering business owner policies to the marijuana industry.