Understanding Business Owner's Policies

Basically, three types of insurance are available to protect your business: property, liability and workers' compensation. Workers' compensation insurance is required by law in all 50 states. Although

Business owner's policies (BOPs) are insurance packages that provide both property and liability coverage at one affordable premium. These packaged policies are available to most small and medium-size companies and can be a good alternative to purchasing separate policies for liability and property insurance.

Large companies and businesses that are considered high risk usually don't meet the criteria for a BOP. The criteria for BOP eligibility include the size of the premises, the required limits of liability, the type of business and the extent of offsite activity. Premiums for BOP policies are based on similar factors, including business location, financial stability, building construction, and security features and fire hazards.