This coverage is ideal for most small and medium sized companies and can be easily bundled.
Business owners insurance is a combination of different policies that cover small and medium sized companies. Carriers create these bundles to provide just the type of protection businesses of this size require, as large corporations require coverage with far greater complexity and customization.
Also known as business owners policy (BOP), it is multiple coverages in a single package.
Business owners insurance usually contains the following types of coverage, all contained within a single bundled policy:
- General liability insurance
- Commercial property insurance
- Business interruption insurance
Though most entrepreneurs know how important it is to ensure that they have general liability coverage at the very least, a BOP expands on that coverage and ensures a broader range of protection beyond general liability’s reach. Most specifically, it adds property loss protection and cover for business interruption costs to the list.
Therefore, beyond general liability, a BOP also provides coverage against losses from property damage, equipment breakdown, loss and restoration of records and paperwork, and other vital cover.
Companies most likely to benefit from a BOP typically have fewer than 100 employees, have annual sales under $10 million, and operate out of a physical location (including a home-based business).
Business owners insurance can be customized to meet a company’s needs, with additional coverages.
Among the most common forms of additional coverage added to a BOP is commercial auto insurance. This is an important policy to add when a vehicle is being used for business purposes.
If there is anything that entrepreneurs have learned over the last couple of years, it is the necessity of being prepared in case the unexpected should happen.
That said, there are times in which it is more beneficial for you to purchase general liability and other policies separately instead of as a package in a business owners 
insurance package. This typically occurs when more robust coverage is required. In those cases, using a commercial insurance quote platform such as Embroker can help to ensure you’re choosing the right coverage for your small- or medium-sized company.
