SkyBlue Insurance

Business Owner's Policies - "BOPs"

A Business Owner’s Policy (BOP) is an insurance package, which combines property, casualty and liability insurance. This type of policy is attractive for small businesses as it is more cost effective than buying separate policies for each type of coverage.

The BOP is specifically designed for small and medium-sized businesses. The eligibility criteria which are considered for this policy are limits of liability, premises size, the nature of the business and any activities which are performed offsite. These factors are considered along with financial stability, location, security measures, and quality of construction and possibilities of fire to determine the cost of the BOP.

To understand this type of policy, property, general liability and casualty liability coverages should be considered separately. Also, a BOP may include insurance against interruption of business. This coverage can provide money to offset lost profits and income to continue paying routine business expenses.

Property insurance entitles you to reimbursement for any loss of your business property. There are two options to choose from for property coverage: standard and special form. Standard form will only compensate for losses which have occurred due to certain predefined perils. If special form is selected, then your policy will cover losses due to any cause, unless a peril is specifically excluded in the policy. Not only is the risk of loss of your business property and any inventory covered, but also the loss of permanently installed equipment like air conditioners, furniture, and any property stored at other sites.

General liability coverage will reimburse a loss to the business, employees or owner from lawsuits that may arise from accidents, negligence, or other damages. You can add additional coverage for losses due to dishonest employees, theft, and mechanical breakdown. Casualty liability coverage protects the business and employees from harm to other people or their property.

Protecting business assets against loss is just as important as coverage for the home or auto. Just as in those types of insurance, one must be sure that the amount of coverage is adequate. It is important to estimate both the replacement cost and actual value of your property as well as the extent of your liability in the event of that type of loss. Remember, when purchasing a Business Owner’s Policy, it is very important to discuss the details with a licensed insurance agent who is familiar with commercial insurance policies. SkyBlue Insurance Agency can be reached at 1-800-771-7758 or on-line at

At SkyBlue Insurance, we’re here for all your business insurance needs!