Running a business comes with plenty of responsibilities, from managing employees and serving customers to protecting the property and equipment you rely on every day. But even with careful planning, unexpected events such as a fire, theft, customer injury, or temporary business closure can create significant financial challenges.

For Oregon business owners, having the right insurance coverage is an important part of protecting everything you’ve worked hard to build. One option worth considering is a Business Owners Policy (BOP), which combines several essential types of business insurance into one convenient package.

A BOP is designed primarily for eligible small and medium-sized businesses and often provides a more affordable, streamlined approach than buying comparable coverages separately. However, not every BOP offers the same protection, so it’s important to understand what’s included and where you may need additional coverage.

So, what exactly does a Business Owners Policy cover, and how can it help protect your Oregon business? Let’s take a closer look at the three main types of coverage typically included.

1. General Liability Insurance

Accidents can happen in any business, even when safety precautions are in place. General liability insurance helps protect your business financially if a customer, vendor, or other third party claims your business is responsible for bodily injury, property damage, or certain personal and advertising injuries.

Depending on the circumstances and policy terms, coverage may help pay for property damage, medical expenses, legal defense costs, settlements, or judgments.

Oregon example: A customer slips on a wet floor at your retail store and suffers an injury. The general liability portion of your BOP may help cover the resulting medical expenses and legal costs if a claim is filed.

2. Commercial Property Insurance

Whether you own your building or lease your business space, the property and equipment you use every day are essential to keeping your business running.

Commercial property insurance helps protect covered physical assets, including buildings, furniture, computers, equipment, inventory, and other business property.

A BOP typically covers certain losses caused by fire, theft, vandalism, and some weather-related events. However, damage from earthquakes and floods is generally excluded and may require separate coverage.

Oregon example: A fire damages your office building, destroying computers, furniture, and valuable business equipment. The commercial property portion of your BOP may help pay to repair or replace covered items, subject to your policy limits and deductible.

3. Business Interruption Insurance

Property damage can affect more than your building and equipment. It can also interrupt your operations, reduce revenue, and make it difficult to keep up with ongoing expenses.

Business interruption insurance, also called business income coverage, is generally included in a BOP and can help replace lost income when your business must temporarily close or reduce operations because of covered property loss.

Depending on the policy, coverage may also extend to cover certain continuing expenses, such as rent, payroll, and other necessary operating costs. Some policies include extra expense coverage to help pay for temporary arrangements that allow your business to resume operations.

Oregon example: A fire forces your restaurant to close for several weeks while repairs are completed. Business income coverage may help replace lost income and continue qualifying expenses during the period of restoration.

Business interruption coverage requires a direct physical loss or damage to a covered location which is caused by a covered event. Not every business closure or disruption will qualify for coverage.

What Doesn’t a Business Owners Policy Cover?

While a BOP provides valuable protection against many common business risks, it isn’t designed to cover every potential loss. Depending on your industry, operations, and location, you may need additional insurance.

Some common exclusions or coverage gaps include:

• Workers’ Compensation: A BOP does not cover employee work-related injuries or illnesses. Oregon employers with subject workers must carry Workers’ Compensation insurance.
• Commercial Auto Insurance: Vehicles owned or used by your business require separate commercial auto coverage. Businesses that rely on employee-owned or rented vehicles may also need hired and non-owned auto liability coverage.
• Professional Liability: Claims involving professional mistakes, negligence, or failure to deliver promised services generally aren’t covered by a standard BOP.
• Cyberattacks and Data Breaches: Standard BOP coverage typically does not provide comprehensive protection for ransomware, data breaches, or other cyber-related losses.
• Floods and Earthquakes: Standard commercial property and BOP coverage generally excludes these events, which require separate policies or specialized endorsements.
• Employment-Related Claims: Standard BOPs don’t cover allegations involving wrongful termination, discrimination, or harassment brought by employees.

Understanding these limitations is especially important for Oregon businesses, where risks can vary by industry, location, and the nature of daily operations.

Protect Your Oregon Business with EPB&B Insurance

Every business is different, and choosing the right insurance coverage involves more than simply purchasing a policy. At Elliott, Powell, Baden & Baker Insurance, we’ve helped Pacific Northwest businesses navigate their insurance needs for more than 75 years.

A