Business Owner's Policy: Save On Basic Coverage
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On average, our customers are able to save 10 percent on their insurance premiums. We generate these cost savings by customizing insurance packages and finding small business insurance discounts. One common small business insurance discount can be found through a Business Owner's Policy.

A Business Owner's Policy helps small businesses meet their basic insurance requirements by packaging two essential policies — Property Insurance and General Liability Insurance — together. Nearly all small businesses need these insurance policies.

In fact, landlords often require small-business owners who lease space to carry General Liability Insurance, and if you have a loan on your commercial property, you must carry Property Insurance. But even if you rent or work from home, it's important to realize that few small businesses have the funds available to absorb an unexpected loss — whether it's a lawsuit or property damage.

Business Owner's Policies are a smart, affordable solution to these basic needs. Insurance companies are able to offer discounts to business owners like you because they only sell BOPs to smaller businesses with "low-risk" profiles. Don't worry — most small businesses are eligible for coverage.


What's Included in a Business Owner's Policy Insurance Bundle?

Let's take a look at the two basic insurance policies included in the Business Owner's Policy bundle.

GENERAL LIABILITY INSURANCE

Every small-business owner knows lawsuits are expensive and wants to prevent them. When you're sued, you have to pay for lawyers to defend your business. If you lose the trial, you also have to pay damages to the other party. That's why General Liability Insurance is important: it pays for the cost of a lawsuit.

Not all lawsuits are covered. General Liability Insurance covers third-party cases — when someone outside your business sues you. Take a look at the types of covered lawsuits.

  • Damaged property. An employee accidently spills coffee on a client's electronics.
  • Physical injury. Someone walks into your business, trips on a traction rug, and ends up breaking an arm.
  • Damaged reputation. A competitor thinks one of your Facebook posts is libelous.
  • Advertising injuries. You post a photo of a happy customer on social media. The customer sues for privacy invasion because you did not ask permission to use the photo.

If someone sues your business for one of the offenses listed above, your insurance covers lawyers' fees, courtroom expenses, and settlements or judgments.

COMMERCIAL PROPERTY INSURANCE

As a business grows, the owner may make investments in tools, equipment, computers, land, and office space. To protect these investments, business owners acquire Commercial Property Insurance.

Property Insurance reimburses your business when it loses property due to…

  • Fire.
  • Theft.
  • Vandalism.
  • Some weather damage.

It should be noted that not all weather events are covered by standard policies. For example, floods, earthquakes, and other natural disasters are usually excluded. However, you can add specialized coverage called "riders" for these perils.


Do I Qualify for a Business Owner's Policy?

In order to sign up for a basic Business Owner's Policy, your business must meet some simple requirements. To buy a BOP, your business…

  • Can't have more than 100 employees.
  • Can't work at large-scale premises.
  • Can't perform high-risk work.
  • Can't earn more than $1 million in annual revenue.
  • Can't need more than 12 months of Business Interruption Insurance.

As we noted above, most small businesses have no problem meeting these requirements. If you have any questions about whether your business is eligible (such as whether or not an insurer considers your work "high risk"), don't hesitate to contact us.


Save Money on Your Coverage Today: Get a Free Quote

By purchasing GL and Property Insurance together, you can save money your commercial insurance. A Business Owner's Policy offers this discount exclusively to small businesses, so make sure to take advantage.

To find out if you qualify, submit a free, online insurance application, and our agents will work to help you take advantage of this and other small business insurance discounts.

Business Owner's Policy: Further Reading