Understanding Business Owners Policies (BOPs)

June 18, 2019||inBusiness Insurance|bop, business insurance, business interruption insurance, business owners policy

A BOP—a Business Owners Policy—can protect your small business against today’s most common risks. Fire, burglary, liability, and business interruption losses are all covered under a BOP.

Since a BOP is prepackaged, there is only one policy to review, and it can be more cost-effective than purchasing separate policies. Additional coverage can be added in the form of endorsements or riders.

Understanding Business Owners Policies (BOPs)
Click here to submit an inquiry to Murphy Insurance or call us at 800 222 8711

Since a BOP insurance policy is specifically designed for small and medium-sized businesses, the type of business can influence eligibility. Typically, companies with 100 employees or fewer and revenues of up to about $5 million or less are candidates for a BOP. Some types of businesses, such as restaurants, may be ineligible for a BOP because of the specific risks inherent in the industry and may need to consider buying individual coverages separately.

Combining Three Insurance Policies Into One Package

In a single, convenient package, a BOP provides the core insurance that most small businesses need, including:

  • Property Insurance | protection for your building or office space and business property, such as equipment and inventory.
  • Liability Insurance | coverage for costs if someone is injured at your business or by using your products or services.
  • Business Interruption Insurance | also known as Business Income Insurance, replaces lost revenues if your business has to shut down due to fire, wind damage, or other covered losses.

You Can Also Tailor a BOP to Meet Your Needs

It’s important to understand that a BOP doesn’t cover all risks associated with running a small business, and the coverage limits are usually lower. If you have employees, you may be required to carry workers’ compensation insurance, depending on your state. You’ll need coverage beyond your personal car insurance if you have a business-owned vehicle. You might also consider insurance for relatively new risks such as computer system break-ins or business identity theft.

Unique risks are associated with your small business; an insurance professional can help you find the right coverages.

Here are some other types of insurance to explore and ask about:

Increasing Your Coverage with Excess and Umbrella Insurance

You can increase the protection your BOP and other business insurance policies provide by adding an excess liability or Umbrella Insurance policy. This supplemental policy boosts your coverage beyond the limits of your primary insurance policies. Depending on the policy, your umbrella coverage is designed to broaden and increase coverage, “filling in the gaps” left by other types of liability insurance by covering additional risk areas and even reimbursing you for deductibles. Our team at Murphy Insurance can advise you about combining an umbrella policy with a BOP or other business insurance. Please Contact Us.

Source: Insurance Information Institute

Read Other Blog Posts

Business Spotlight Rail Trail Flatbread Co.

Business Spotlight: Rail Trail Flatbread Company & New City Microcreamery

Our Business Spotlight shines on Rail Trail Flatbread Co., an upscale pizza place and the owners of New City Microcreamery and Less Than Greater Than speakeasy, a local business helping revitalize downtown Hudson and beyond. From wood-fired flatbreads to liquid nitrogen-crafted ice cream, this creative group has grown into a thriving family of restaurants and bars, each backed by the trusted protection of Murphy Insurance.
Read more
Business Spotlight Elbow Grease Marketing

Business Spotlight: Elbow Grease Marketing

We’re excited to launch our Business Spotlight series by featuring Elbow Grease Marketing, a valued partner and fellow Hudson-based business. EGM has played a key role in helping Murphy Insurance strengthen its brand and grow online. In return, EGM trusts Murphy for both business insurance and the personal insurance needs of its employees. Our partnership is a true example of what local collaboration can accomplish.
Read more
Attract Top Talent in Milford with Competitive Employee Benefits

Attract Top Talent in Milford, MA with Competitive Employee Benefits

In today’s competitive job market, offering strong employee benefits is no longer optional—it’s essential. For Milford, MA, businesses, Murphy Insurance provides customized, affordable benefit solutions that help you attract top talent, reduce turnover, and foster long-term growth.
Read more
Business Insurance in Worcester, MA What You Need To Know Original

Business Insurance in Worcester, MA: What You Need To Know

Running a business in Worcester, MA comes with both opportunities and risks. From property damage to cyber threats, having the right business insurance is essential to protect your investment. Murphy Insurance Agency provides customized coverage for local businesses of all sizes and industries. With over 85 years of experience, we offer trusted advice and tailored solutions to help your business thrive.
Read more
Office workers

Massachusetts Enacts Pay Transparency and Pay Data Reporting Law

The new Massachusetts law, the Frances Perkins Workplace Equity Act, requires employers with 100 or more employees to provide pay data reports to the Massachusetts state secretary effective Feb. 1, 2025, and employers with 25 or more employees to disclose the pay range in job postings effective July 31, 2025.
Read more
Co-workers with technology

Best Practices for Creating a Cybersecurity Culture

Employees are commonly targeted during cyberattacks, making them an organization’s first line of defense amid such incidents. For this reason, it’s important to make cybersecurity an integral part of company culture as a valued practice upheld by every member of the organization.
Read more
Umbrella

The Value of Commercial Umbrella Insurance

In today’s increasingly litigious environment, lawsuits stemming from liability incidents have surged in frequency and severity, leaving many organizations with substantial losses. Fortunately, that’s where commercial umbrella insurance can help.
Read more
Commerical truck and car

6 Factors Driving Commercial Auto Losses

A variety of trends have contributed to the rise of commercial auto losses. Here is a look at the most significant factors driving commercial auto losses across the country.
Read more
Confetti

Start the Year Right: 10 Business Insurance Tips

The beginning of a new year is the perfect opportunity to reassess your business insurance policies. Here are 10 practical tips to optimize your business insurance and start the year on the right foot.
Read more

Visit Our Business Insurance Page

Business Insurance

Murphy Insurance stands as your steadfast partner in safeguarding your business from unforeseen challenges in today’s dynamic business landscape. In an era where comprehensive business insurance is not just a prudent choice but a vital one for ensuring the long-term stability and security of your enterprise, we are here to offer our expertise. Running a business inherently entails various risks that can potentially impact your financial stability and reputation. Learn more about our comprehensive business insurance solutions, which are meticulously designed to protect you from these potential threats, granting you peace of mind necessary to focus on the growth and prosperity of your business.