Business Owners Policy Insurance in New York

Business Owners Policy Insurance

Business Owner’s Policy Insurance is a worthwhile investment for small business owners with fewer than 100 employees, who earn less than $5 million in annual revenue and have a business premise to maintain. 

This unique insurance policy sees three individual insurance options rolled into one to provide comprehensive cover for business owners. 

Since Business Owners Policies apply only to special types of businesses with specific needs, operations, and risks, it’s important to contact a specialist at Next Century Insurance who can help you determine whether a BOP is right for your small or medium-sized business.

What Is Business Owner’s Policy (BOP) Insurance?

A Business Owner’s Policy Insurance or BOP blends business liability and business property insurance into a single business insurance policy. BOP insurance protects against injury or property damage claims and is recommended for small and medium-sized enterprises.

Who Needs a Business Owner’s Policy?

Small to medium-sized businesses with assets like inventory, equipment, or a brick-and-mortar business establishment will benefit from an insurance policy for business owners. 

Typically, a business owner’s insurance policy is available to enterprises that accrue less than $5 million in annual revenue and 100 employees or less. 

As a result, businesses in the industries listed below are eligible for BOP insurance:

  • Restaurants and cafes
  • Retail stores
  • Contractors
  • Convenience or small grocery stores
  • Condominium associations
  • Landlords of apartment blocks
  • Warehouses
  • Wholesalers

However, despite also being small businesses with the same revenue and staff complement, the following industries are not eligible for business owner’s policy insurance because of the additional risks they carry.

If you own a small business but are unsure whether it qualifies for BOP insurance, contact an insurance broker at NCI who can assist you in finding the right business owner’s insurance policy for your needs.

What Does a Business Owner’s Insurance Policy Cover?

Business Owner’s Policy Insurance combines business liability and property insurance into a single comprehensive policy. As a result, these policies protect you against claims for bodily injury and damage to your equipment, inventory, or business premises. Some of the coverages found in a BOP include:

  • Commercial Property Insurance protects your business premises and property therein, whether you rent, own, or lease it. Some of the elements covered include:
    • The building/s
    • Furniture
    • Equipment
    • Inventory 
    • Fixtures
    • Accounts receivable
    • Valuable documents and records
  • General Liability Insurance offers coverage where you may be sued for causing injury to a person or damage to property. It will also cover the costs relating to your legal fees.
  • Business Income Insurance provides coverage where you may need assistance replacing lost income occurring due to the suspension of your business operations resulting from unforeseen events. This coverage oversees costs relating to monthly benefits of employees and other critical payments like rent.
bop insurance

Does My Small Business Need a BOP?

Taking out business owner’s policy insurance may be suitable for your small business if you tick one or more of these boxes:

  • You have a business building or property to protect. For example, if you have BOP insurance and your place of business or inventory is destroyed in a fire or due to theft, the BOP might cover the repair of the premises or replace the merchandise lost. 
  • You want to secure your investments. For instance, perhaps an unhappy client sends you an email containing a virus, which you unknowingly open. BOP insurance will cover the data recovery and help pay the costs associated with restoring your business’s computer system.

What Other Policies are Essential for Small Businesses?

Additional policies that small business owners may want to consider that do not fall under business owner’s policy insurance include: 

  • Professional Liability Insurance

Also called errors and omissions coverage, this policy guards against claims of errors or negligent acts in your services.

  • Workers’ Compensation Insurance

This coverage is vital for businesses with employees. Generally purchased separately from BOP insurance, it is mandatory in most states, including New York. 

This insurance helps compensate employees or their families for medical costs should they be involved in a work-related incident causing injury, illness, or death. Additionally, it covers an employee’s income should they not be able to work due to illness or injury.

  • Commercial Auto Insurance

An excellent policy for businesses that use cars or trucks for delivery or transport to consider. This insurance covers the company in an instance where the employee is at fault for a vehicular accident.

Should I purchase a BOP or Just General Liability Insurance?

General liability insurance protects a business owner from claims that their enterprise caused property damage or bodily injury. However, it does not provide business income insurance. As a result, we recommend small business owners opt for a Business Owner’s Policy which combines business income and commercial property with your general liability coverage.

Why Choose NCI?

NCI understands the needs of owners of small to medium businesses. Since each company is unique and has different needs, our expert insurers can help you find the policy that provides the right coverage for your business needs.

Get a Quote

To find out more about a business owner’s policy insurance cost for your enterprise, call us today for a quote.