Business Owners Policy

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If you’re a small business owner, you may not want to worry too much about all the intricacies and expenses of various types of business insurance, but you still want to be protected at all times.

Striking this perfect balance is the business owner’s policy – a crucial insurance policy for small businesses anywhere.

This article will discuss the crucial aspects of a BOP insurance, what it contains, what it covers, and whether you should consider getting it.

What Is a Business Owner’s Policy Insurance?

A business owner’s policy insurance, also known as BOP insurance, is a ‘package’ policy that combines the two primary insurance types any commercial establishment should have: business property insurance and business liability insurance.

As such, a BOP will protect you against potential financial consequences from events such as damages to your building, natural disasters, and other perils. It will also cover liabilities, in case something happens to your customers within your premises.

Best of all, although a BOP essentially contains two types of insurance, the overall premium is still lower than getting two separate policies. You can also further customize it by including additional coverages like crime, forgery, and spoilage.

Because of its affordability and customizability, small businesses are increasingly going for this type of insurance.

Who Needs a Business Owner’s Policy?

As mentioned above, a business owner’s policy insurance is perfect for traditional small businesses, start-ups, or low-risk businesses such as low-rise apartments and small offices.

In most of those factors, the business size is usually the main determinant. However, the size of your business alone doesn’t ensure that a BOP will be enough.

For one, although a BOP is very cost-effective, it’s not as comprehensive and specific as other insurance policies. If your business is incredibly specialized, you might want to check if the BOP covers your specific risk type.

One example is a small tech startup. Going by the size of the company alone, it may seem that a BOP is good enough. However, a traditional BOP by itself, without additional coverage for computer-related risks, typically won’t cover lost data because of cybersecurity attacks, which is detrimental to any tech company.

In other words, the size of the business alone isn’t a reliable indicator of whether a BOP will be enough.

To make sure that a BOP suits you, make sure to consult with a trained insurance agency first, such as Magnum Insurance.

Why Should I Have a Business Owner’s Policy Insurance?

Most small businesses need general liability insurance for protection against third-party bodily injury and property damage claims.

Businesses also need commercial property insurance to cover the costs of repairing or replacing physical assets damaged by accidents or other perils.

While small businesses can buy separate general liability and commercial property policies, this business package usually offers a cheaper total premium compared to when buying individual policies.

Thus, if you want to save money and feel like you don’t need a particular type of insurance, you should get BOP insurance.

Business Owners Policy Coverage Guide

The coverage of a BOP insurance policy is pretty clear-cut since it combines the two most popular commercial policies: general liability and property insurance.


Typical of general liability policies, a BOP will cover customer injury, medical bills, and legal expenses.

However, take note that this policy will not include your employees. For that, you’ll need a separate policy called workers’ compensation policy or workers’ comp.


Property coverage will cover everything your business owns that isn’t a vehicle or a building. As long as you can move it, you’re covered: whether those are desks, office equipment, kitchen appliances, and more.

In addition to covering the cost of repair and replacement, it can also cover the cost of debris removal, pollution cleanup, and income loss.

Property coverage usually falls under two categories: named perils and all perils.

Named perils are cheaper but are limited in the situations they cover. Only common disasters or hazards are covered, including fire, theft, and water (or ice and snow) damage.

On the other hand, all perils include everything unless it’s specifically excluded in the policy.

Custom Plan

One of the best things about the BOP is that it’s also customizable.

General liability and property insurance are pretty cut and dry, so it’s almost the same for everyone. But if you want specific coverages, you can also include that in your BOP.

You can include coverages such as:

  • Cyber liability
  • Data breach insurance
  • Professional liability
  • Hired and non-owned auto liability, etc.

Getting BOP Insurance with Magnum Insurance

Business insurance isn’t just for businesses with tons of cash to spare–it’s a critical financial protection for everyone. Even if you’re just a startup or a small business you should still get a BOP to protect you against possible dangers.

Getting a BOP insurance policy is quick and easy with Magnum Insurance. We can accommodate a wide variety of requests that will help you protect your business, no matter the size and risk exposure.

Magnum Insurance makes Business Owners Policy Insurance easy

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