What Is a Business Owner’s Policy? 
For many, owning their own business is a dream come true. Controlling your destiny and working for yourself can create lucrative profits, exciting opportunities and attractive flexibility. However, business owners must also act responsibly and diligently in protecting their organization’s finances and future. Furthermore, issues and incidents affecting a company could have adverse effects on its own circumstances and the personal financial wellness of its owner.  

Who Needs a Business Owner’s Policy? 
Compiling and maintaining a suitable insurance portfolio is key to any business’s risk management and loss control practices. A business owner’s policy (BOP) can be an attractive and convenient option for many small- and medium-sized businesses. Regardless of industry or specific operations, these packages generally include a combination of coverages most organizations need. In addition, BOPs may be more cost-effective for policyholders than purchasing individual components and may offer the convenience of only having to communicate with a single agent or provider. 

What Does a BOP Cover? 
BOPs can cast a wide array of protection across common risks and exposures many organizations face. Although the specific risks and hazards faced by a business may vary, most BOPs can provide valuable financial protection by including the following types of insurance: 

General liability insurance—If a business is responsible for third-party losses, this coverage may help pay for the following: 

• Medical bills
• Lost or reduced earnings
• Repairing or replacing damaged property
• Legal costs 

Commercial property insurance—This coverage, also known as business property insurance, provides financial assistance for damages involving a business’s physical property, such as the following: 

• Buildings
• Computers
• Equipment
• Tools
• Inventory
• Furniture
• Signage
• Landscaping 

Business interruption insurance—If a covered event forces a business to cease or alter its operations temporarily, this type of insurance can help pay for resulting costs and losses, including the following: 

• Rent/Mortgage payments
• Lost income
• Payroll
• Tax/loan payments 

While BOPs may be applicable for many businesses, organizations will likely need to augment their insurance portfolios to address any remaining coverage gaps. Companies should consider their specific operations and circumstances to determine if additional policies are necessary, such as the following: 

• Workers’ compensation insurance
• Commercial auto insurance
• Cyber liability insurance
• Professional liability insurance (also known as errors and omissions insurance)
• Employment practices liability insurance
• Directors and officers insurance
• Commercial umbrella insurance 

Acquire Optimal Coverage 
Without adequate insurance coverage, even a single incident could threaten a business’s entire mission and jeopardize its future. Having tied their own financial situations to that of their companies, owners may be particularly vulnerable in these situations and could suffer devastating losses. 

The Bob Putnam Agency is here to make sure that doesn’t happen. Our agents have over 40 years of experience helping businesses in the Worcester, Cooperstown, Binghamton and Cobleskill areas build optimal insurance portfolios. Contact us today to get started. .