As the owner of a small to medium-sized business, you have the chance to combine the basic insurance coverages you need into one, comprehensive policy called a Business Owner's Policy, or BOP. A BOP groups together several kinds of business insurance, including general liability, property, and casualty. Since they combine different kinds of coverage into a single policy, BOPs may save you money on premiums, and also save you the administrative hassle of purchasing several insurance policies.

What coverages does a BOP provide?

BOPs generally provide the same coverage as you would receive if you purchased separate property and casualty and liability insurance policies. Examples:

• General liability to protect you in the case of bodily injury or property damage lawsuits
• Business interruption to cover losses that cause you to reduce or halt production, close your doors, or cease operations for a time. Provides money to offset lost income and profits and pay expenses for a set period of time
• Crime, covering losses from robberies or vandalism, as well as those from employee theft or embezzlement
• Vehicle coverage for the cars and trucks your business owns or leases

Tip: Business Owners Policies usually insure property for replacement value, meaning you will receive a payout that is enough to replace damaged or stolen property at today's value.

Why consider purchasing a BOP?

• It can lower your business insurance premiums and streamline your business insurance.
• It can reduce hassles because you only have one premium to pay monthly and one insurance policy to keep track of.
• You can easily add coverage or riders to a BOP if your business needs change.

How do I qualify for a BOP?

Business Owners Insurance is available for small and medium-sized businesses. If you have 100 or fewer employees and revenues of $5 million or less annually, you may qualify for a BOP.

Some types of high-risk businesses, such as manufacturing firms and bars, may not be eligible for coverage under a BOP, and may need to purchase separate insurance policies tailored to cover the risks inherent in the business.

Keep in mind: BOPs meet the general insurance needs of most businesses, but they don't cover every type of business risk. You may need added coverage for specific aspects of your business. Your insurance agent or broker can help you determine whether purchasing a BOP is the right decision for you, and can recommend specific insurance to suit your business needs.