Business Owner's Policy: Property + General Liability for Less

If your head's spinning from all the various policies, we've got good news. Here's one policy that can make your coverage simpler: the Business Owner's Policy (or BOP).

A lower-cost option, BOPs bundle three types of coverage…

Business Interruption Insurance is a coverage tacked onto Property policies. It can help you survive if you're forced to shut down by an event covered by your Property Insurance. For example: a storm or fire could damage your building to such an extent that you can't open for a few weeks. While ongoing repairs may force you to relocate or suspend operations, Business Interruption Insurance can pay for relocation costs and reimburse your IT business for the income it loses during a closure.

BOPs are tailored for small businesses and actually "reward" you for not having the higher liabilities your larger competitors do, giving you a lower premium on your insurance. Sometimes, it's nice to be the little guy.

In order to qualify, a small IT business must meet certain criteria, which often include….

  • Having fewer than 100 employees.
  • Operating in small business premises.
  • Working in a lower-risk environment or workplace.
  • Needing no more than a year's worth of Business Interruption Insurance.

Many independent contractors, IT consultants, and other small IT operations have no problem meeting these requirements and take advantage of the cost savings these policies offer.

Next: Cyber Liability Insurance: Financial Protection from Cyber Criminals

70% of businesses raise prices or cut hiring when sued