Expert Advice
A Risk Management Guide for Marketing and Management Consultants

Chapter 2: Understanding Small Business Insurance for Independent Consultants
Part 2: Basic Insurance Policies for Sole Proprietors & Independent Contractors
The Business Owner's Policy

A Business Owner's Policy (or BOP) is an insurance package designed for the needs and budgets of the small-business owner. If you are eligible for a BOP, you'll receive General Liability Insurance, Property Insurance, and Business Interruption Insurance in one discounted bundle.

In order to qualify for a BOP, your marketing or management consulting business must…

  • Have small business premises. The square footage of your space matters when it comes to issuing Business Owner's Policies. Most BOPs also limit the number of employees you can have. Both of these stipulations help your provider ensure your business is a small business.
  • Have a low risk profile. Typically, consulting is considered a low-risk profession, but your claims records may affect your carrier's assessment. BOPs are only offered to small businesses with relatively low risks.
  • Need only a year's worth of Business Interruption Insurance. Business Interruption Insurance New browser window icon. comes as an endorsement to a Property policy. This coverage compensates you for the income you lose when your business must temporarily close to handle a covered Property claim. The compensation you receive is usually based on past financial records of your consulting business.

To find out whether your business is eligible for a BOP's cost-effective coverage, talk to one of our insureon agents.

Next: Health Insurance

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