What’s Typically Included in a BOP and What Isn’t?

One of the most essential insurance options for small and midsize businesses is a business owner’s policy (BOP). Global Insurance Agency can help you navigate the ins and outs of BOP coverage so you can make informed decisions.

What’s Typically Included in a BOP?

A BOP bundles key coverages into a single policy, making it easier and cost-effective for business owners to manage their insurance needs. Most standard BOPs include:

• Commercial property insurance may help cover your physical assets, such as buildings, equipment and inventory, against risks such as fire, theft and severe weather.
• General liability insurance may help cover your business if someone is injured on your premises or if you’re held responsible for others’ property damage or advertising injuries.
• Business interruption insurance may help cover lost income and operating expenses if your business temporarily halts operations due to a covered event.

These core coverages address many of the most common risks businesses face in Houston, TX.

What Isn’t Included in a Standard BOP?

A BOP doesn’t cover every risk. Some common exclusions and limitations include:

• Professional liability—Claims related to professional errors or omissions are typically not covered. You may need a separate professional liability insurance.
• Workers’ compensation—Employee injuries or illnesses are not included and require a separate workers’ compensation policy, which is mandatory for many Texas businesses.
• Commercial auto—Vehicles used for business purposes are not covered under a BOP. Consider a commercial auto policy for those exposures.
• Flood and earthquake damage—Standard BOPs typically exclude flood and earthquake coverage, which may be crucial in certain areas.
• Cyber liability—Losses from data breaches or cyberattacks are not included unless you add specific cyber coverage.

Secure a BOP Today

Global Insurance Agency works with business owners in Houston, TX to identify coverage gaps and recommend additional policies or endorsements as needed. Our team is here to help you build a business owner’s policy that fits your operations and risk profile. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.