Understanding Business Owners Policy (BOP) Insurance

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2021 saw a flurry of entrepreneurial activity, with around 5.4 million new businesses preparing to launch.

Starting a new business or side hustle, such as freelancing or consulting comes with many responsibilities. One of those responsibilities is finding insurance coverage for your business. A Business Owners Policy is often purchased by many small business owners.

Not clear on what a Business Owners Policy actually gets you? Keep reading for a breakdown of what it is and what it could provide.

What Is a Business Owners Policy?

New and existing businesses typically have a lot of insurance needs. More often than not, businesses will purchase a number of insurance policies.

For example, a business with a lot of physical inventory on-site might consider a property insurance policy to help reduce the risks associated with possible theft or damage from fire.

On the other hand, a business with a lot of customer foot traffic might want a general liability policy.

For a new business, though, your small business insurance needs may prove relatively modest. In those instances, you could look for a Business Owners Policy.

A BOP could provide you with a single, bundled policy that helps to cover the essential areas of most business needs. Let’s look at the specific coverage areas that you get with a BOP from PolicySweet®.

General Liability

Most business end up choosing general liability coverage because it can be beneficial for third-party claims. General liability coverage can address injuries or property damage to third parties, typically customers or other non-employees that interact with your business.

So, let's say that a customer slips and falls, and sustains some kind of injury. This is one of the most common incidents that businesses end up getting sued over. A general liability policy could help cover their medical costs.

One of the other common possibilities is that your business causes some kind of damage to a customers’ property. General liability coverage could help cover the costs of replacing or repairing damaged items.

General liability coverage is standard for most Business Owners Policy plans.


It is unusual for businesses to not own or rent property. Even solopreneurs who run online businesses likely still have property that their business needs to function in the form of computers, networking equipment, and other devices.

The property insurance element of a BOP is there to help protect this aspect of your business. Most policies cover a handful of essentials, such as:

  • Tools and equipment
  • Furniture
  • Fixtures
  • Inventory

The coverage typically encompasses a range of specific kinds of problems, such as:

  • Fire
  • Vandalism
  • Wind damage

So, let's say that a fire starts at your business, and it damages some of your inventory. Property coverage could help you replace it.

Make sure you understand exactly what kind of damage the property insurance element of the BOP covers. In most cases, you can get a specific list or ask your insurance provider for specifics.


These days, most businesses have a lot of data about their customers, ranging from home addresses to payment information. That can make your small businesses a target for cybercrime.

If your business gets hacked or otherwise compromised and customer data gets exposed, it can impact your business.

Cyber insurance helps your business deal with the aftermath of cybercrime. Some things that it may help cover include:

  • Expenses to determine data loss
  • Legal fees
  • Customer notification expenses

So, let's say that a hacker got into one of your databases and stole some customer information. The cyber insurance may help you manage the costs of informing the affected customers.

BOP Insurance and You

If you launch a new small business, you may want some kind of insurance coverage. Finances are often shaky enough in the first few years that serious problems, like an injured customer, can greatly impact the business. A Business Owners Policy can help protect you from common risks new businesses face.

You can get liability, property, and cyber coverage with a BOP from PolicySweet. It could help to protect you from third-party injuries, damage to business-critical property, and cyber threats.

PolicySweet has provided BOP insurance to several types of businesses. For more information about our coverages or to get started, contact PolicySweet today.


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