Do You Need a BOP? A Simple Guide for South Carolina Entrepreneurs

Running a small business often means juggling multiple responsibilities, whether that’s daily operations or long-term planning. Insurance decisions are part of that process, and one option many entrepreneurs come across is a business owners policy, commonly referred to as a BOP.

What Is a Business Owners Policy?

A business owners policy typically combines several common types of business insurance into a single policy. Most BOPs include general liability coverage and commercial property coverage, though exact terms and limits can vary by insurer.

This type of policy is often designed for small to mid-sized businesses with relatively low-risk operations. Retail shops, offices and service-based businesses are common examples of organizations that may be eligible for a BOP.

When a BOP May Make Sense

A BOP may be considered when a business has physical assets, such as a building, equipment or inventory, and also interacts with customers or the general public. For example, if a customer is injured on the premises or if business property is damaged by a covered event, the combined structure of a BOP may help address those scenarios under one policy. These arrangements can provide a convenient and cost-effective solution for multiple insurance-related needs.

Entrepreneurs in South Carolina may also review a BOP as their business grows or changes. Expanding operations, leasing a new space or adding employees can all prompt a broader look at how coverage is structured.

When a BOP May Not Be Enough

While a BOP can address common exposures, it does not cover every risk. Businesses with specialized operations, professional services, company vehicles or higher-risk activities may need additional policies beyond a BOP. Coverage needs can also shift based on industry, revenue or contractual requirements.

Because of these variables, a BOP is often viewed as a starting point rather than a complete solution for every business.

Reviewing Your Business Insurance Needs

Every business operates differently, even within the same industry. Taking time to understand what a BOP includes (and what it does not) can help entrepreneurs ask informed questions about their insurance options.

If you’d like to discuss whether a BOP may be appropriate for your business, contact our office today to review your coverage and explore available options.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.