What’s a Business Owner’s Policy and Why Do I Need It?


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What’s a Business Owner’s Policy and Why Do I Need It?

If there's one thing we know for sure, it's that Alberta is a great place for small business owners. Of all the businesses in Alberta, 95% are small businesses, and they contribute greatly to the regional and national economy.

At Cornerstone Insurance, it’s our goal to protect the small businesses that lend employment opportunities, economic growth, and innovation to Alberta’s business sector. These business operations are the future of the province, and we’re proud to call many of them our clients.

One of the main ways we help sole proprietors in Alberta is through straightforward and comprehensive small business insurance. When clients come to us for new policies (or to change their current policies), they often come with many questions about how business insurance works. One of the key sources of confusion is the terminology that gets thrown around in the insurance world.

One of the terms that makes people scratch their head the most is the “business owner’s policy.” We’ll break down what it means, who needs it, and what's included.

What is a Business Owner’s Policy? 

A business owner’s policy (BOP) is a term used to describe a bundle that includes a wide range of insurance coverages designed for small and medium-sized businesses. This typically includes general liability, property insurance, business interruption insurance, and other types of coverage you might need for your company. By bundling these options for you, insurance brokers (like us!) can typically offer them at a better rate.

Don’t get too hung up on the term “business owner’s policy,” though. It’s not a specific type of business policy you need. It’s just a term for the comprehensive bundle of commercial insurance coverage you’ll get for your company. The individual coverages included in a BOP can vary greatly from business to business.

Who Needs a BOP? 

Small business owners in Alberta face different risks depending on what they offer. An energy provider’s insurance needs will differ greatly from those of a retail shop; however, every small business – no matter how big or small – should have a BOP that protects them from any risks they may be exposed to.

What Does a BOP Cover? 

Depending on your specific type of business, BOPs include some of the following coverage:

Professional Liability Insurance 

If you offer professional services, you’ll need liability coverage to protect you from potential lawsuits and damages.

General Liability Insurance 

General liability insurance is fairly comprehensive, and it’s virtually essential for every business.

Commercial Auto Insurance or Fleet Insurance 

If your business uses vehicles, commercial auto insurance will likely be part of your BOP.

How Do I Get Commercial Insurance for My Business?

Sorting through insurance quotes from different insurance companies is one way to shop for insurance, but sole proprietors are busy people. That’s just one of the many reasons why plenty of Alberta businesses choose to shop with insurance brokers like Cornerstone Insurance.

As brokers, we can shop the market for you to find the right policies and coverage that fit your exact needs. Then, we can bundle them into a simple BOP in a single quote at a single price. It’s simple and effective – exactly what small businesses need.

If you’re unsure about your business policies or you’d like to tell us about your new business, please get in touch with our insurance brokers. We’d be happy to explain all the terminology and set you up with policies to protect your company as it grows.

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