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Business Owner Policy

Designed primarily for small to medium sized companies, a business owner policy is a combination policy that handles two types of coverage. The first is property insurance, and the second is liability insurance.

Property insurance covers your brick and mortar operation if your business suffers from a fire, a theft, or other covered events. The liability policy helps to defend you in court and pays out settlements if someone is injured on your property and launches a personal injury suit against you in response. They also tend to cover business interruption in the event that a covered event forces your business to close temporarily.

Business owners may also occasionally add coverages to their policy that cover other common challenges that companies face, such as cybersecurity breaches. Our agency can help write you a BoP policy that covers common issues in your specific industry as well.

Best of all, BoP policies are often extremely cost effective.

Who is eligible for a business owner’s policy?

You can purchase a BoP if you have fewer than 100 employees, have a brick-and-mortar location, and make less than $1 million in annual revenue. They are designed for small, low-risk companies rather than larger operations.

They are not suitable for contractors, manufacturing companies, or companies that operate virtually.

What is Coverage B in the business owner’s policy?

Coverage B is the part of the BoP that covers the property you use to do business. Usually this covers the building itself and about 100 feet away from your business premises while in a vehicle or out in the open, should a theft or vandalism occur.

This policy also covers you for other people’s property when it is in your care or custody. For example if you run a repair business and your customer’s car, farm equipment, electronics or other devices get stolen because they dropped them off at your shop for you to work on, then your Coverage B will help cover these costs. If you’ve already put in labor on those items then the BoP will cover the costs of your labor.

What is the difference between a commercial package policy and a business owner’s policy?

A commercial package policy is the type of policy we’d go to if you were ineligible for a BoP policy due to the risky nature of your business. CPPs are more flexible, allow for more tailored coverages, and are designed to cover bigger companies as well.

A CPP is similar in that it is a bundled policy that can save business owners money simply by ensuring that they do not have to pay for policies one at a time.

What’s the difference between a general liability and a business owner’s policy?

General liability coverage only takes care of you in the event that you get sued. It does not protect your property, inventory, or operations. Usually, a business owner’s policy is a better choice, if you can get one.

A CPP policy also covers both liability and property, if it turns out you are ineligible for a BoP.

How do I estimate the cost of business insurance?

The median cost of a business owner’s policy is usually less than $700 annually, or about $50 to $70 per month. The average cost is around $1200 a year, or $99 per month.

You can reduce these costs somewhat by working with your insurance agent to create a comprehensive risk management plan, and by adjusting your deductibles and limits.

Working with an insurance agency that’s licensed to sell multiple policies from multiple providers can also help. You can get quotes from different companies all at once, and compare both pricing and coverage to ensure that you’re getting a policy that’s both cost-effective and useful when there’s a crisis.

Is a BoP right for me?

No business should go without insurance. If you think you qualify for a BoP, reach out to our agency to discuss your options. We can also assess your total business profile to assess whether you may need other coverages from other policy types.

We will create a customized plan that ensures that you get all the coverage you need to protect the company you’ve worked so hard to build.

Call (504) 228-7184 today.

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Business owner policy in the New Orleans and Metairie area, as well as any part of Louisiana

business owner policy