Business Owners Package Insurance

A Business Owners Package policy, commonly called a “BOP” contains many of the insurance coverages needed by most small businesses. While these policies are not standard, there is great variation from insurance company to insurance company; there are certain common elements. The basic BOP offers business property for both building and contents, and liability insurance protection for the operation of your business. This liability protection will generally include both the operation of your business, at its established location, and the liability from your products or completed operations.

Some, but not all of the policies, will also offer business income and extra expense protection after an insured loss. BOP policies do not contain all of the coverages needed by a small business. Notably they do not cover any Workers’ Compensation, professional liability, or business vehicle coverage.

Frequently Asked Questions

Is the Businessowners Policy (BOP) available in my state?

It is available in Alabama, Arkansas, Connecticut, Delaware, District of Columbia, Georgia, Illinois, Indiana, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Vermont, Virginia and Wisconsin. In other states, coverage is provided by a General Liability policy with premium based on your annual payroll.

Can anyone qualify for a Businessowners Policy if they live is a state where it is available?

No. The policy is designed for smaller operations. If you often auction heavy equipment, firearms, real estate, motor vehicles or any livestock, the General Liability Policy is for you.

If you are insuring a building or contents and you do not have a fire department within 5 miles you do not qualify for the BOP. If you are insuring a building or contents located within 5 miles of a fire department but not within 1,000 feet of a public fire hydrant, we must ask for underwriting approval which may or may not be given depending on your individual circumstances.

If you have no prior insurance and have been an auctioneer for less than 3 years you do not qualify for a BOP but can qualify for General Liability Insurance.

If you have no prior insurance and have been an auctioneer for more than 3 years, you will likely qualify for a BOP based on your experience in the business. We still must obtain underwriting approval which is granted in most cases.

What is the annual cost for a Businessowners Policy?

It can be as low as $575 depending on your state and the value of property you have to insure. The more property you insure the higher the cost. Auctioneers located in larger urban areas will pay more than those in smaller towns.

What if I do not qualify for a Businessowners Policy? Is there something else?

Yes. Your first line of protection is the General Liability Policy. To provide you with a proposal (quote) we need to have a completed and signed application. This will include a copy of your standard auction contract, a copy of your auctioneer’s license (if your state requires it). We will also review your Web site as part of our underwriting. This process usually takes 7 to 21 days to put coverage into effect.

What other coverages should I consider in addition to a Businessowners Policy?

  • Business Automobile Insurance
  • Errors and Omissions Insurance
  • Consignment Property
  • Building Coverage
  • Business Property Coverage (coverage for the inside of your building)
  • Coverage for trailer(s) you may own and use to conduct auctions