All businesses are not created equal in the eyes of insurance companies, but fortunately for some, there is the Business Owner’s Policy, or “BOP.”
A Business Owner’s Policy is a type of business insurance policy that combines several different commercial insurance policies and policy additions into one convenient package that typically saves the company money and makes filing a claim easier. You can learn more about BOPs by reading our Business Owners Policy Page, HERE.
As the title of this blog suggests, not all businesses can qualify for a business owner’s policy. There are four categories of qualification that typically denote whether a business can purchase a BOP, these categories are: class of business, location of the majority of business operations, size of a business’s primary location, and revenue. The information provided in this blog post is broad and may not address all of the aspects of your unique business. Requirements vary between insurance companies, so it is important that you discuss your options with an insurance agent and inquire about your company’s eligibility before making any decisions regarding your business insurance policy.
Class of Business: Typically, eligible classes of business include small restaurants, retail stores, apartments, office-based businesses, service-based businesses, wholesale distributors, and contractors.
Location of the Majority of Business Operations: Companies that do work on the premise of their business are more likely to qualify for a BOP. This might not necessarily disqualify your mobile or online business. Typically, no more than 25% of gross sales can come from off-premises operations.
Size of a Business’s Primary Location: Business Owner’s Policies are meant to benefit small- and medium-sized businesses that are more vulnerable to being shut down because of a small hiccup, such as machine malfunction by providing a variety of policy services in a premium bundle, but at a more affordable price. Typically the primary operating area cannot exceed 15,000 square feet in total area.
Revenue: As mentioned earlier, this type of policy is meant to help small- and medium-sized businesses operate (and hopefully grow). So, each location (which would require a separate policy) cannot exceed $1 million in annual gross sales.
Contact one of our Business Insurance Specialists to find out if your business can qualify for a Business Owner’s Policy. Even if you are not eligible, we can help find other ways to bundle policies and policy additions to save your company money.
Denver Office Castle Rock Office
1735 E. 17th Ave. #3 513 Wilcox St. #200
Denver, CO 80218 Castle Rock, CO 80104
Phone: 303–388-7216 Phone: 303–688-1251
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