A business owner’s policy often looks at property damage from the perspective of named-peril coverage. What this means for a business owner is that they’re covered for damage caused by events specifically listed in their policy. Most often, business owner’s policies provide coverage for fire, wind, vandalism, smoke, explosions or other catastrophes. Other BOPs can offer coverage for “all risks,” but this is usually a special BOP versus a standard one. Make sure to clear any questions about what is and isn’t covered in your requested policy prior to making a decision.

BOPs typically include coverage for buildings (both owned and rented) as well as business-owned items. It also may cover third-party items that are temporarily in your care or control. Covered business property usually needs to be stored or kept within close proximity of the premises.

Having liability protection insurance as part of your BOP can help cover your legal responsibility for damages sustained by other parties. The damage in question needs to happen as a result of regular operations, but it can encompass bodily injury or property damage. If you’re worried about defective products, faulty installations or errors in services you provide, a BOP policy is worth considering.

Liability coverage can even extend to your computer operations or material loss due to a system outage or other issues with cybersecurity.

For some businesses, your fleet of vehicles is your lifeblood. But paying for auto insurance for each individual car or truck can be expensive. Commercial auto insurance is often more affordable for small businesses than individual car insurance or even multi-car policies. Including these in your BOP can reduce the costs of insuring these vehicles even more.

If your workers are injured on the job and aren’t found to be negligent, it’s typically your responsibility to help provide for them. Workers compensation coverage can help offset the costs of paying them for their downtime while also protecting you from financial liability. Workers compensation insurance can be expensive, but wrapping it into a BOP can reduce the premiums for this coverage.

Depending on the type of business you own, you may look at other additional business owner’s policy coverage. This can include crime insurance and flood insurance. Other types of coverage can include protections for spoiled merchandise, computer equipment, forgery and mechanical breakdown. If you do seek a policy with these inclusions, be aware that the coverage limits are typically low.

BOP insurance can sometimes include professional liability, health or disability insurance coverage, but the inclusion of those items varies by insurance company.