top of page
  • Tanvir Ahmad

What is Business Owners Insurance?

Updated: Nov 28, 2023

Business Owners Insurance, often referred to as Business Owners Policy (BOP), is a type of insurance policy designed for small and medium-sized businesses. It combines several coverages into a single package, providing a convenient and cost-effective solution for businesses that face similar risks. Business Owners Insurance typically includes property insurance, liability insurance, and business interruption insurance.


What Does Business Owners Insurance Include?

General Liability Insurance Typically Covers:

Property Damage.

When customer property is damaged by an employee, your coverage may help pay for repairs or replacement.


Bodily Injury.

If someone other than an employee is injured on your property, this coverage can help with medical expenses plus legal expenses and damages.


Product Liability.

If products developed or sold by your business harm people or property, this coverage could help pay legal expenses associated with product liability lawsuits and medical expenses if an injury occurs.


Libel, Slander, and Copyright.

This coverage helps protect you against some lawsuit expenses from personal and advertising injury. Advertising injury can include disparaging another business in your advertisements, stealing an advertising idea, and more.


Property Insurance Typically Covers:

Building or Leased Space.

This coverage provides protection for the building you own or even a building where you are required to provide insurance coverage as part of the lease.


The Contents of Your Building.

Property insurance can cover inventory, equipment, or tools and other people’s property in your building that has been damaged by an employee, yourself, theft, natural disaster, or weather.


Income From Your Business.

If products developed or sold by your business harm people or property, this coverage could help pay legal expenses associated with product liability lawsuits and medical expenses if an injury occurs.


How Much Does Business Owners Insurance Cost?

The cost of business owner's insurance can vary widely depending on several factors, including the type of business, its size, location, industry, coverage limits, and the chosen insurance carrier. Business owner's insurance typically combines several types of coverage, including property insurance, liability insurance, and business interruption insurance.

On average, small businesses in the United States might pay anywhere from a few hundred to a few thousand dollars per year for business owner's insurance. However, this is a general estimate, and the actual cost can be higher or lower based on the specific circumstances of the business.

To get an accurate quote, it's best to contact insurance providers directly and provide them with detailed information about your business.

0 views0 comments
bottom of page