What is BOP Insurance?

BOP is a one-stop-shop insurance bundle solution specially crafted for small businesses. So shouldn't everyone get a BOP?

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BOP vs. General Liability Insurance

Business Owner's Policy and General Liability Insurance are both important forms of coverage because they cater to different needs.

BOP bundles General Liability Insurance with Property Insurance and Business Interruption or the less common Equipment Breakdown coverage. The BOP umbrella is both cost-effective and versatile. 

• BOP is Versatile: A BOP's strength lies in its adaptability. By consolidating multiple coverages into one policy it can meet the diverse needs of a business.

• BOP is Cost-Effective: BOP often provides a more economical solution by bundling various policies instead of getting multiple standalone policies each at full price. 
  
• Suitability: Designed for small to medium-sized businesses & customizable with riders.

If you need GL, Property Insurance, and Business Interruption insurance, get BOP. Don't pay for 2 or 3 premiums when you can pay for one smaller premium.

General Liability Insurance focuses on more specific risks. It covers legal expenses and damages related to bodily injuries, property damage, or advertising injuries.

• GL insurance is Specific: If your primary concerns revolve around customer bodily injury and property damage General Liability Insurance offers targeted protection. The premium for a standalone General Liability Policy is less than a Business Owner's Policy. 

BOP Satisfies Maryland’s General Liability Requirements

In Maryland, some professional licenses require general liability insurance. The state accepts BOP  policies as long as the general liability limit meets Maryland's licensing GL (General Liability) minimum. Maryland will not accept Umbrella Insurance in lieu of this requirement.

The Maryland State Board of Plumbing for example mandates General Liability Insurance in the amount of at least $300,000, along with Property Damage Insurance of at least $100,000. If your BOP covers these respective amounts that requirement is satisfied.

When BOP May Not Be Enough

The more innovative the company the more likely you'll need to rely on specialized coverages like cyber liability or professional liability coverage instead of BOP, especially if your business operates in multiple industries or in more than one state with different licensing requirements.

Probably best to pass on BOP if your company is growing fast. Your policy could be canceled if you outgrow eligibility. It is not uncommon for BOP to require less than 100 employees. It may be a good problem to have but it's good to know as your company grows.