December 3, 2018
As a new business owner, you’ve got a lot on your plate. There’s the fun stuff, of course, but there are plenty of pitfalls and ongoing concerns. There are also the legal aspect of business, like licensing and insurance. Let’s take a look at what BOP Insurance is and find out whether or not it is necessary for entrepreneurs like you!
What is BOP?
BOP stands for Business Owner’s Policy. It’s a type of insurance policy that helps business owners protect their businesses from property loss and lawsuits. They typically combine property insurance and general liability insurance together at a discounted rate. To qualify for BOP insurance, however, you must meet the eligibility requirements.
Eligibility Requirements for BOP
Because insurance companies only offer this type of insurance policy to small and medium sized businesses, they do not provide coverage for any business that:
– Makes more than $1,000,000 in revenue per year.
– Operates in a high-risk industry.
– Has over 100 employees.
– Has a large office or workspace.
How BOP Insurance Helps Your Business
Although BOP is not always a requirement, there are some cases where you as a business owner are required by law to carry the coverage offered in a BOP.
General liability insurance is a big portion of the business owner’s policy and is often a minimum requirement for signing contracts, including commercial leases. This liability insurance helps to cover lawsuits that can occur if:
- Someone is injured while patronizing your business.
- Your property is damaged.
- You are a victim of copyright infringement.
BOP assists you with legal fees and allows you to keep running your business as usual even when in the midst of a lawsuit.
The other portion of a BOP is property insurance coverage, which is usually not required by law but is important to have – especially if you are a small business owner. A BOP’s property insurance covers the technology, tools, and buildings that are used to run your business. This helps protect against natural disasters like fire, as well as criminal activity like theft.
Looking for a reliable Maryland business insurance agent? The professionals at American Heritage have the experience necessary to help keep you and your business protected. Contact us for more information on our services or to request a quote for BOP for your startup today.