If you run a small or mid-sized business, you have probably heard of a business owners policy, or BOP. It is one of the most common ways to buy business coverage, because it bundles the main protections into a single policy.
What a BOP usually includes
According to the Insurance Information Institute, a BOP brings together three main types of coverage:
- Property insurance for the buildings and contents your company owns.
- Business interruption insurance for income lost after an event like a fire, and possibly the extra cost of working from a temporary location.
- Liability protection for your legal responsibility if your business operations harm someone else.
What it does not include
A BOP does not do everything. Professional liability, auto insurance, workers’ compensation, and health and disability insurance all need separate policies.
That list matters in practice. If you drive for work, your personal auto policy may not respond the way you expect. If you give professional advice, a client’s claim about your work may fall outside your general liability coverage.
Workers’ compensation in Virginia
The Virginia Workers’ Compensation Commission says a business with more than two employees regularly employed in Virginia is required to carry workers’ compensation coverage. For contractors, the employees of subcontractors count toward that total.
Is a BOP right for your business?
It depends on your size, your work and your risks. Insurers usually offer BOPs to smaller businesses with fairly typical risks. Larger companies, or those with unusual exposures, may need a commercial package or policies built separately.
To get started, gather your number of employees, yearly revenue, property values and a description of what you do. Then give us a call and we will go through it with you.
