What is a Business Owners Policy?

Many small businesses in Massachusetts are exposed to a number of common risks. Even businesses in vastly different industries frequently have some similar risk exposure. A business owners policy provides small businesses with a convenient and affordable way to protect themselves from some of the common risks they face.

A business owners policy is a type of commercial insurance policy that’s specifically designed for small- to medium-sized businesses. While this type of policy won’t satisfy every small- and medium-sized business’ coverage needs, it’s an insurance option that many businesses should consider.

What Massachusetts Businesses is a BOP Right For?

As mentioned, business owners policies tend to be good options for small- and medium-sized businesses in Massachusetts that are exposed to common risks that lots of businesses face. Larger businesses and businesses that have unique risk exposures often need coverages that BOPs aren’t set up to provide. For these businesses, a commercial package policy may be more appropriate.

What’s the Difference Between BOPs and CPPs?

Both business owners policies and commercial package policies are commercial insurance policies that combine several individual coverages together. BOPs tend to provide basic coverages that many businesses need, while CPPs frequently offer more coverage options. CPPs often are more customizable and have more robust protections.

Not every business needs the levels of customization and coverage that CPPs provide, though. For many small- and medium-sized businesses, BOPs offer plenty of coverage and a sufficient amount of customization.

What Coverages Does a BOP Provide?

Business owners policies are normally written as package policies, meaning they contain several individual policies within them. The exact individual policies that are contained within a BOP can vary, but they frequently include:

• Commercial Property Insurance, which might cover a business’ buildings and equipment
• General Liability Insurance, which might cover certain common types of liability lawsuits
• Business Interruption Insurance, which might cover a revenue decrease that’s caused by a covered incident
• Cyber Liability Insurance, which could provide coverage against data breaches

Some BOPs also offer cyber liability insurance and/or commercial auto insurance, although these coverages aren’t always as widely available as the above three coverages.

Do BOPs Include Workers Compensation Insurance?

Business owners policies usually don’t include workers compensation insurance. Businesses that have employees and need this coverage usually get a separate workers compensation policy in addition to their BOP.

Because many businesses that need BOPs also need workers compensation coverage, most insurance agents who specialize in helping small businesses are familiar with both BOPs and workers compensation policies.

How Much Do BOPs Cost?

Generally speaking, business owners policies have low premiums. Since these policies only include basic coverages, insurers are able to keep premiums affordable for small businesses and startups. Usually, BOPs are even more affordable than purchasing the coverages that they offer separately, because insurers offer deep discounts for bundling several policies together in a package.

Nevertheless, the premiums that insurers charge for BOPs vary. They depend on many factors, some of which may include the:

• Location and size of a business’ property
• Industry a business operates in
• Annual revenue a business generates
• Coverages and limits a business selects

To find the most affordable policy that provides the coverage their business needs, business owners should compare quotes for BOPs from several different insurers.

How Can Businesses in Massachusetts Get a Business Owners Policy?

Business owners who need insurance for their small- or medium-sized Massachusetts business, should contact a business owners policy specialist from Flavin and Flavin Insurance. An independent agent will be able to quickly request quotes for policies from different insurers. An agent who’s familiar with these types of policies will know how to make sure that a business owners policy meets all of a business’ insurance needs. If it doesn’t, they’ll be able to recommend an alternative type of insurance.