A Business Owner’s Policy - What does it cover, and what’s the cost?

Business Owner Policies are designed for people who are running commercial establishments or industries with less than 100 employees. Also, if you are a businessman earning less than $5 million in revenue annually, you can buy BOP. Not all businesses are eligible for this policy.

If you have a business that has an office or storefront and deals with selling physical products, this policy could be the right investment. You can consult a reputed agency or agent known for providing business owner’s policy in New Jersey about whether your business is suitable for BOP or not.

This article describes BOP in detail, who should get it, what it covers, and its cost. Continue reading it to learn more about it.

Business owner’s policy (BOP)-

Those who are small business owners can benefit from this type of insurance coverage. In a single policy, businesses can get both property and liability protections. Generally, it provides these three types of coverage-

• General liability insurance.
• Commercial property insurance.
• Business interruption insurance.

Who should buy it?

If you are running a business that has assets, you can consider investing in it. Assets could be anything from equipment and tools to inventory. It’s crucial for someone who deals with a brick-and-mortar business.

If you have a business in any of these industries, you should buy a business owner's policy in New Jersey-

• Retail, grocery, and convenience store.
• Restaurants, wholesalers, contractors.
• Landlords of buildings (apartments).
• Warehouses.

However, a business in any of these industries might not be eligible for BOPs.

• Manufacturers.
• amusement parks.
• Car dealerships and auto repair shops.
• Bars and pubs.
• Banks and financial institutions.

If you are unsure whether your business is eligible for BOP, you can contact your insurance broker. They can help you understand what kind of coverage suits your business. Moreover, you can ask for a quote from him to check what the policy can cover and how much it can cost.

What kind of coverage does it provide?

It usually offers coverage required to defend your business against;

• certain lawsuits.
• repairing the property.
• replacing damaged property.
• covering medical bills for customers due to injury and much more.

In order to offer the above-listed protections, this policy covers the following types of insurance.

General liability insurance-

If you are running a small business and do not want to take the risk of lawsuits eating up your business, you should buy a business owner policy in New Jersey containing general liability insurance.

Usually, this type of insurance is covered in every BOP. It is specially designed to offer coverage against lawsuits alleging any property damage and injury to anyone. It can even cover the cost of medical claims based on the condition.

In some cases, you might be required to provide proof that you have liability insurance while getting a loan for your business or signing a contract.

Business interruption insurance-

In situations when your business slows down or needs to shut down for a few days or months due to theft/disaster or any other issue, business interruption insurance can prove beneficial. This is because it can cover the income you lost during these times.

If you are running a business that deals with recurring expenses (for example- payroll), you should invest in this type of insurance coverage. In case you fail to generate revenue for your business for some time, this insurance can help you continue meeting your goals.

Commercial property insurance

This insurance coverage can protect a business building and its inventory. If there is any damage to your property, you can benefit from this policy. In case your property is broken, stolen, or damaged severely by weather, this policy can cover the cost to repair and replace your property.

It’s important to have this type of insurance for all businesses that occupy any commercial space. It’s especially applicable to all those who are running a business that involves manufacturing products, maintaining inventory, and keeping equipment.

What is the cost of a business owner’s policy?

The exact cost of a policy varies from insurance company to agents and brokers. Also, the cost of a policy depends on the following factors-

• Coverage limits you need.
• Type of industry (higher-risk businesses may be required to pay more amount when compared to lower-risk industries).
• Type of property your business is located at.
• The value of your commercial property.
• The location of your business.
• Age and size of your business.
• Claim history.
• Any additional coverages you need.

If you own a business in New Jersey, it’s best to discuss your insurance requirements with a broker who offers various customized and comprehensive plans of business owner’s policy in New Jersey. He can let you know the exact price of this policy based on your business needs.