If you own a small business in Michigan, we are sure you have heard of BOP insurance or Business Owner’s Protection. Knowing about BOP is an important part of owning a business and we are going to break it down for you.

BOP Insurance In Michigan

There are 3 important areas of your business that BOP insurance covers:

  1. Property Insurance
  2. Business Interruption Insurance
  3. Liability Protection


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Property Insurance

Property insurance covers property for its replacement value if it is damaged or lost. You are not required to cover the cost to replace your property without deduction for depreciation based on how old the property is. It also covers fire or theft. And in the event, anything happens to your personal property like office furnishings, inventory, raw materials, machines, computers, or other items that allow the company to run, your property insurance covers it.

There are 2 different types of property insurance: standard and special. Special provides more comprehensive coverage.

Business Interruption Insurance

Business Interruption Insurance helps cover any loss of income you have due to a fire or some other sort of catastrophe that causes your business to close. During the time you are not able to operate, you will be reimbursed. In the event you have to move you will also be reimbursed for moving costs.

Liability Protection

Liability Protection is the last part of BOP Insurance. In the event bodily injuries or property damage is caused by defective products, faulty installations, or errors in service from your or your employees, liability protection helps to cover you. Sometimes General Liability Insurance is also referred to as Commercial General Liability Insurance.

In the event someone files a claim your business is a dangerous environment, your insurance protection pays you up to the policy limits, as well as attorney fees, and other legal expenses if you are found liable. These expenses can be very pricey so it is good to make sure you are covered.

Make sure you keep in mind BOP does NOT cover professional liability, auto insurance, worker’s compensation or health and disability service. These are covered under separate policies.

Let’s Get You Started With BOP!

For those who want their BOP insurance coverage looked at, or shopped around, make sure you call one of our local Michigan Commercial Lines agents today! They can walk you through your policy and make sure you have an in-depth understanding of what is covered and what is not. If you are thinking about starting your own business, let us quote you and see what we can do for you!