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  • Business Insurance for Startups

    Game Plan

    In-Depth

    Business Owner's Policy: The Best of Both

    A business owner’s policy (BOP) combines what are arguably two of the most critical business insurance coverages: business property and business liability. And for good measure, business interruption (or loss of business income) insurance is usually included as well. With one policy, small business owners are protected against fire, theft, lawsuits, vandalism, smoke damage and much more—it’s a long list. Not only is bundling these coverages convenient, it is also frequently more cost effective than buying these policies separately.

    Many insurers will issue BOPs for specific types of businesses. You may also be able to purchase optional coverages that will enable you to customize a policy that meets your business’ unique needs.

    Just keep in mind that there are many coverages that will not be “packaged” into a BOP, including flood, professional liability, commercial auto, workers’ compensation, health and disability. And not all types of businesses are suited to BOPs. Some pose unique risks that may demand more customization than a BOP can offer. But if you’re just starting out, chances are, your business will be able to take advantage of the more affordable pricing that BOPs make available.

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    Game Plan

    • Does your business qualify for a BOP? Talk with your insurance professional to find out.
    • Have an eye to ensuring that you’re not purchasing overlapping coverages. Scrutinize the terms of all your policies—if you’re purchasing a BOP, is there duplicate coverage in another policy that you can discontinue? Or are you missing critical coverage? An insurance professional can help determine this as well.
    • Disaster preparedness should always be on your business’ radar. The Hartford’s website offers many useful strategies.